Bank of Baroda hits over two-year low; falls 10% in one week

The stock is down 2% at Rs 123 on the BSE was trading at its lowest level since February 15, 2016.

Shares of Bank of Baroda (BOB) hit an over two-year low of Rs 123 per share, down 2%, extending their 8% decline on the BSE in the past five days. The stock of state-owned bank was trading at its lowest level since February 2016.

The Central Bureau of Investigation (CBI) on June 12, 2018 said that it had registered four more cases against eight persons in connection with the Srijan scam involving a Bhagalpur NGO that allegedly pilfered funds meant for government welfare schemes.

CBI had booked the former senior branch manager of the BOB, Bhagalpur, its cashier, former District Welfare Officer Arun Kumar, Srijan's cashier, its other employees and unknown others. In another case the agency booked the current manager of BOB's Bhagalpur branch, then branch manager of Indian Bank and all office-bearers of Srijan, IANS report suggested.

On clarification on news report, BOB said the irregularities/ incident came to light when Government Departments, in their FlRs have claimed that certain outward collections meant for their accounts were not reflected in their accounts and also certain credits appearing in their accounts were not pertaining to them.

To find the fact, Bank internally investigated the matter, wherein irregularities observed against the -27- officials/ex-officials/staffs regarding inter related transactions in the -41- government accounts. Bank has started disciplinary proceedings to take appropriate action against the concerned officials, who were involved in the matter, it added.

The bank said it has also submitted order of sanction for prosecutions to CBI against the four erring officials of the Bank for irregularities observed against them by the CBI in this matter.

Meanwhile, on clarification on news article appearing on Times of India - June 19, 2018 "Axis Bank search panel sets sights on BoB CEO". The bank said the media report is speculative and do not comment on such speculative reports.