Shares of Canara Bank on Tuesday plunged over 5% as the Central Bureau of Investigation on Monday charged ex-MD RK Dubey and other two senior officials of Canara Bank in the alleged loan default case of over Rs 68 crore. The CBI had charged former Chairman-cum-Managing Director RK Dubey and two of the then executive directors of the Canara Bank of cheating and forgery in the alleged loan default of over Rs 68 crore sanctioned in 2013, PTI reported citing unidentified officials. Following the development, shares of Canara Bank were the top losers among the components of Nifty PSU Bank index.
The stock of Canara Bank dived as much as 5.37% to a day’s low of Rs 250 on NSE on Tuesday. Recently last week on 12 March, shares of Canara Bank hit a 19-month low of Rs 225.2. The stock of Canara Bank touched a low of Rs 223.65 on 8 August 2016. The CBI has slapped charges of criminal conspiracy, cheating, forgery and provisions of the Prevention of Corruption Act on the then CMD R K Dubey, then executive directors Ashok Kumar Gupta and V S Krishna Kumar, and two directors of the Occasion Silver Pvt Ltd Kapil Gupta and Raj Kumar Gupta, besides the company, PTI reported citing a CBI charge sheet.
A normal trading volume was witnessed in the shares of Canara Bank, as at 10:05 am. more than 50 lakh shares of Canara Bank exchanged hands on both NSE and BSE with about 48 lakh shares on NSE alone. According to a PTI report, the CBI had registered a case on 27 January 2016 on the allegations that the company, dealing in wholesale and retail trading of silver jewellery and articles, diamond, gold jewellery, imitation jewellery, gift items, crockery items etc. had cheated Canara Bank to the tune of Rs 68.38 crore (approx).