Bank of Baroda fell 4.39% to Rs 174.30 at 10:50 IST on BSE after the Central Bureau of Investigation conducted searches at several locations of the bank in its probe into alleged forex violations.
Meanwhile, the BSE Sensex was up 14.69 points, or 0.05%, to 27,094.20.
On BSE, so far 9.17 lakh shares were traded in the counter, compared with an average volume of 8,452 shares in the past one quarter.
The stock hit a high of Rs 176.20 and a low of Rs 168 so far during the day. The stock hit a record high of Rs 228.90 on 23 January 2015. The stock hit a 52-week low of Rs 137.50 on 29 June 2015.
The stock had underperformed the market over the past one month till 9 October 2015, rising 1.03% compared with 5.29% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 19.11% as against Sensex's 1.79% decline.
The large-cap company has an equity capital of Rs 460.83 crore. Face value per share is Rs 2.
The alleged black money transfers out of Bank of Baroda have taken place under a rule which allows upto $100,000 in transfers as pre payment for imports. The transfers have taken place over a period of many years. Bank of Baroda is working with the Central Bureau of Investigation (CBI) to get to the bottom of the alleged illegal transfer of funds out of the bank to overseas locations including Hong Kong.
CBI announced on Saturday, 10 October 2015, that it registered a case against 59 current account holders and unknown bank officials and private persons on a complaint from Bank of Baroda. It was alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of Foreign Exchange worth approximately Rs 6000 crores in illegal & irregular manner in violation of established banking norms under the garb of payments towards suspected non-existent imports.
Searches were conducted by CBI along with Enforcement Directorate (ED) at three premises including the Bank of Baroda, Ashok Vihar Branch, Delhi and also residential premises of two bank officials whose roles have allegedly emerged in the said case. Incriminating documents recovered during searches are being scrutinized, CBI said in a statement.
In a separate announcement on Sunday, 11 October 2015, CBI said it conducted further searches at 50 locations on various companies/firms in an on-going investigation of a case related to alleged violation of banking norms. It was revealed that most of the addresses given by the companies/firms were either false or the companies/firms did not exist at the said addresses. Most of the accused persons allegedly involved in perpetration of the said crime have been identified and their interrogation is underway. There was allegedly overseas remittance of foreign exchange of Rs 6000 crore (approximately).
It was further alleged that the amount remitted in each transaction would be kept at less than $100,000. All the remittances were made to Hong Kong. The amount was remitted as advance for import and in most of the cases, the beneficiary was the same. Most of the foreign exchange related transactions were carried out in newly opened current accounts wherein heavy cash receipts were observed but the branch did not generate Exceptional Transaction Report (ETR) and did not monitor the high value transactions.
Bank of Baroda's net profit fell 22.7% to Rs 1052.15 crore on 4.8% increase in total income to Rs 12243.72 crore in Q1 June 2015 over Q1 June 2014.
The Government of India holds 59.24% stake in Bank of Baroda (as per the shareholding pattern as on 30 September 2015).
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