Shares of Syndicate Bank on Monday plunged over 8% after the CBI arrested its chairman and managing director SK Jain for allegedly taking bribe of Rs. 50 lakh for increasing credit limit of some companies.
File photo of Sudhir Kumar Jain, chairman and managing director of Syndicate Bank, who was arrested by the CBI in a bribery case in Bangalore. (PTI photo)
Syndicate Bank's scrip slumped 8.57% to Rs. 132.25 on the BSE.
At the NSE, it tumbled 8.45% to Rs. 132.10.
Led by the sharp fall in the stock, the company's market value fell by Rs. 961.85 crore to Rs. 8,078.17 crore.
Shares of Bhushan Steel and Prakash Industries also took a severe beating, plunging 9% and 19.96%, respectively on the BSE.
Jain and seven others were on Sunday remanded in CBI custody for four days as the agency plans to probe various other angles into the case that may emerge from the telephonic transcripts of the official and conduits.
The CBI placed Jain and seven others – chairman and managing director of Prakash Industries Ved Prakash Agarwal and Director Vipul Agarwal, Chartered Accountant Pawan Bansal, Vineet and Puneet Godha (relatives of Jain), Vijay Pahuja and Pankaj Bansal under arrest.
Jain was arrested by the CBI on Saturday for allegedly negotiating with Bhushan Steel for an illegal gratification of Rs. 50 lakh in return for granting credit extension to that company as it had defaulted on the payment of loan instalments amounting to crores of rupees to the bank.
CBI has registered two cases against Jain and 11 others including CMD and Directors of two private firms based at Delhi -- Bhushan Steel and Prakash Industries -- in a bribery case under relevant sections of Prevention of Corruption Act, 1988 and criminal conspiracy.