J&K Bank hits 10-year low after raid at sacked chairman’s residence

Srinagar: Jammu and Kashmir Bank shares fell 10 percent intraday on June 19 after a media report indicated that former chairman residence has been raided by Anti-corruption Bureau (ACB).

The stock touched a day’s low of Rs 33.50, the lowest price since May 2009. At 1238 hours IST, it was quoting at Rs 34.40, down Rs 2.80, or 7.53 percent on the BSE.

CNBC-TV18 reported that J&K Bank’s former Chairman Parvez Ahmad’s residence has been raided by the Anti-corruption Bureau.

The government on June 8 had removed Parvez Ahmad and appointed its executive president RK Chibber as an interim chairman.

Ahmed was removed by the state government on alleged charges of corruption, nepotism and favouritism. He was appointed as chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.

The bank in a regulatory filing had said the state government is taking a host of steps including splitting the post of chairman and managing director to improve transparency, governance, compliance and profitability of the lender.

(Courtesy Moneycontrol.com)