Syndicate Bank stock closes 7.05% lower on CMD's arrest

The Syndicate Bank stock tanked on Monday on news reports that the Central Bureau of Investigation (CBI) on Saturday arrested its CMD SK Jain and five others for allegedly taking bribe of Rs 50 lakh for enhancement of credit limit to some companies bypassing rules and regulations.

At 1:23 pm, the stock was trading 6.88 per cent lower at Rs 134.70 on the BSE. The stock fell to its intra-day low to  Rs 132.7 at 10:09 pm on Monday. The Sensex was trading 150 points higher at 25,631 level. The stock closed 7.05 per cent lower at Rs 134.45 on the BSE.

On Saturday, the CBI filed two cases against him for allegedly receiving bribe of Rs 50 lakh and "fraudulently bypassing" rules and regulations to enhance credit limit of two companies which have been involved in a coal scam.

Acting on an internally developed intelligence, CBI had been monitoring the CMD for the last six months before arresting him Saturday in Bangalore.

"We are determined to fight corruption at high level and today's case was one such example," CBI Director Ranjit Sinha told PTI.

With PTI inputs