Jammu & Kashmir Bank tumbled 13.93% to Rs 1,584 at 13:38 IST on BSE after a media report alleged that some of the directors and officers at the bank were not declaring all the non-performing and stressed assets in its loan book.
Meanwhile, the BSE Sensex was up 18.26 points, or 0.08%, to 24,252.41.
On BSE, so far 5.83 lakh shares were traded in the counter, compared with an average volume of 6,820 shares in the past one quarter.
The stock hit a high of Rs 1,845 and a low of Rs 1,472.25 so far during the day. The stock hit a record high of Rs 1,995 on 16 May 2014. The stock hit a 52-week low of Rs 995 on 8 August 2013.
The stock had underperformed the market over the past one month till 29 May 2014, rising 4.57% compared with 7.87% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, jumping 37.85% as against Sensex's 14.74% rise.
The mid-cap company has an equity capital of Rs 48.48 crore. Face value per share is Rs 10.
According to the report, Jammu & Kashmir Bank (J&K Bank) has not classified the loan amounting to Rs 1100 crore and given to three companies and as NPAs in its balance sheet. These assets include Rs 650 crore loan given to a Kolkatta-based company engaged in agro and ancillary business, Rs 400 crore loan disbursed to Mumbai-based real estate company and Rs 100 crore to a Hyderabad-based company.
The report alleged that the audit committee of the board has not objected to this fraudulent balance sheet management, indicating their complicity.
Net profit of J&K Bank rose 0.21% to Rs 250.60 crore on 2.9% rise in operating income to Rs 1888.60 crore in Q4 March 2014 over Q4 March 2013.
J&K Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.22% as on 31 March 2014, compared with 0.22% as on 31 December 2013 and 0.14% as on 31 March 2013.
The bank's ratio of gross NPAs to gross advances stood at 1.66% as on 31 March 2014, compared with 1.65% as on 31 December 2013 and 1.62% as on 31 March 2013.
Provisions and contingencies fell 66.1% to Rs 60.57 crore in Q4 March 2014 over Q4 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 13% as on 31 March 2014, compared with 13% as on 31 December 2013.
J&K Bank functions as a universal bank in J&K and as a specialised bank in the rest of the country. The J&K state government holds 50.17% stake in J&K Bank (as per the shareholding pattern as on 31 March 2014).
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