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Shares of PSU banks have dropped after the Mumbai Economic Offences Wing (EOW) on Thursday busted a largescale banking racket amounting to Rs 1000 crore which involved many people who conspired to perpetrate widespread fraud at Dena Bank and Dhanlaxmi Bank among others
The EOW has registed 12 FIRs against several individuals as well as officials of public sector banks. The architect of the scam is Mohammed Fashiuddin of the Showman Group. Six of the accused have been arrested so far.
The role of officers at Bank of India, Indian Overseas Bank,, and Dena Bank is also being investigated. Institutions such as MMRDA, PG Foils and SIES Trust are the victims of the fraud.
Shares of Dhanlaxmi Bank, Dena Bank, Indian Overseas Bank and Vijaya Bank have plunged between 3-7% on the BSE during the noon trades.
