Shares of Vadodara-headquartered state-run Bank of Baroda tanked more than 4% in the afternoon trades on Wednesday as the Central Bureau of Investigation questioned the former Chairman-cum-Managing Director with regard to Rs 2,919 crore alleged loan fraud by Rotomac owner.
Shares of Vadodara-headquartered state-run Bank of Baroda tanked more than 4% in the afternoon trades on Wednesday as the Central Bureau of Investigation questioned the former Chairman-cum-Managing Director with regard to Rs 2,919 crore alleged loan fraud by Rotomac owner. According to a PTI report, the Central Bureau of Investigation has questioned the former CMD M D Mallya, six former senior officials of Bank of Baroda including the former executive directors V Santhanaraman and R K Bakshi in connection loan fraud allegedly involving the owner of Rotomac Global Pvt Ltd, Vikram Kothari amounting Rs 2,919 crore.
Shares of Bank of Baroda were the top losers among the components of Nifty Bank and Nifty PSU Bank indices on Wednesday. The stock of Bank of Baroda slipped as much as 4.73% to a day’s bottom of Rs 140.85 on NSE while the stock dropped 4.6% to a day’s low of Rs 141.05 on BSE on Wednesday. A sudden spike in the trading volume was seen in the shares of Bank of Baroda in the late afternoon deals, as at 3:08 pm, more than 1.56 crore equity shares of Bank of Baroda exchanged hands on both NSE and BSE with about 1.48 crore shares on NSE alone.
Vikram Kothari, the owner of Rotomac Global Pvt Ltd, was arrested by the Central Bureau of Investigation and was now in judicial custody, PTI said in a report. The case relates bank loans worth Rs 2,919 crore from 2008 onwards to Rotomac Global Pvt. Ltd. by a consortium of seven nationalised banks, PTI reported citing CBI FIR.
The fraud amount has been escalated to Rs Rs 3,695 crore, including the accrued interest, because of repeated defaults on payment, PTI reported citing unidentified CBI officials. The principal exposure of the banks regarding the loan is Bank of India Rs 754.77 crore, Bank of Baroda Rs 456.63 crore, Overseas Bank of India Rs 771.07 crore, Union Bank of India Rs 458.95 crore, Allahabad Bank Rs 330.68 crore, Bank of Maharashtra 49.82 crore and Oriental Bank of Commerce Rs 97.47 crore, PTI added citing unnamed CBI officials.
Apart from the shares of Bank of Baroda, all the PSU banking scrips comprising Nifty PSU Bank index traded in the negative territory on Wednesday barring the shares of Canara Bank. Other than Bank of Baroda, shares of Indian Bank were the worst hit followed by the stock of Andhra Bank, IDBI Bank, Oriental Bank of Commerce, Syndicate Bank and Allahabad Bank. The benchmark Nifty PSU Bank index shed about 1.2% to 2,856.45 while the Nifty Bank index inched down 1.1% to 25,058.75. Shares of Bank of India was down 0.6% at Rs 109.2; Union Bank of India was down 1.1% to Rs 96.35.