CBI raids 10 Syndicate Bank branches in fraud case, stock falls

Shares of the bank fall as news of raid spreads; branches in Delhi, Jaipur and Udaipur under scanner

The Central Bureau of Investigation (CBI) has raided 10 branches of Syndicate bank investigating alleged fraud of over Rs 1,000 crore at the government-owned bank, a CBI spokesperson said on Tuesday.

Several officers of the Syndicate Bank are also under probe for a fraud(HT photo)

“The searches are taking place at Syndicate Bank branches across 10 places in Delhi, Jaipur and Udaipur. The fraud is involving more than Rs 1,000 crore fraud relating to discounting of fake cheque, discounting of fake bills and availing overdraft against (non-existent) LIC policies,” said Devpreet Singh, Chief information officer, CBI.

As news of the raid spread, shares of Syndicate Bank slipped by over 3% and at 2.40 p.m., they were trading at 3.48% to trade at Rs 59.65 per share on the Bombay Stock Exchange (BSE).

Prior to the news, the shares were trading higher by 3.4% at Rs 63.90 per share, as the day’s high on BSE.