Syndicate Bank fell 1% to Rs 59.95 at 14:51 IST on BSE in volatile trade after the bank informed that the CBI has registered a case against some of its officials and others for causing an alleged loss of Rs 1000 crore to the bank.
Meanwhile, the BSE Sensex was up 59.04 points, or 0.24%, to 24,718.27
On BSE, so far 4.91 lakh shares were traded in the counter, compared with an average volume of 4.47 lakh shares in the past one quarter. The stock saw high intraday volatility. The stock fell as much as 0.41% at the day's high of Rs 60.30 so far during the day. The stock dropped as much as 4.87% at the day's low of Rs 57.60 so far during the day.
Syndicate Bank during market hours today, 9 March 2016 informed that the Central Bureau of Investigation (CBI) has yesterday, 8 March 2016 registered a case on a complaint from Syndicate Bank under various sections of Prevention of Corruption Act, 1988 against then General Manager, FGM Office, Syndicate Bank, New Delhi; then DGM, Regional Office, Syndicate Bank Jaipur; then Chief Manager, MI Road Branch, Syndicate Bank, Jaipur; then AGM, Malviya Nagar Branch, Syndicate Bank, Jaipur; then AGM, Syndicate Bank, Udaipur; a Chartered Accountant & two private persons from Udaipur; a private person of Jaipur; certain private companies and other unknown public servants & private persons for causing an alleged loss of approximately Rs 1000 crore to the bank. Shares of Syndicate Bank fell 2.02% to Rs 60.55 yesterday, 8 March 2016.
It was alleged that the accused persons in connivance with the bank officials committed the fraud of Rs 1000 crore by resorting to discounting of fake cheques & bills against fake LCs and arranging over-draft limit against non-existent LIC Policies, the CBI said. The fraud was allegedly committed at branches of Syndicate Bank at Malviya Nagar & MI road branches in Jaipur and Udaipur branch in Rajasthan. It was further alleged that since 2011, the bank officials of said branches at Jaipur & Udaipur colluded with private persons / customers and resorted to discounting of fake cheques, fake Inland Bills and arranging over-draft limit against non-existent LIC polices. The amount involved in individual transactions ranged from approximately Rs 40 lakh to Rs. 5 crore but majority of them were in the range of approximately Rs 2.5-4 crore. To avoid detection, many of these transactions were nullified from the proceeds of new fraudulent transactions, the CBI said.
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Meanwhile, searches are being conducted today at 10 locations including Jaipur, Udaipur and New Delhi which led to recovery of incriminating documents.
Government of India holds 69.24% stake in Syndicate Bank (as on 31 December 2015).
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