Marred by shaken investor confidence due to corporate misgovernance and gross mismanagement at the top level, J&K Bank on Thursday closed at Rs 38.75, down by 7.63 percent at NSE thus eroding the market cap by Rs 180 cr in a single day.
Trading remained heavy with more than 8.52 lakh shares were traded during the Thursday as the investors were quitting the stock due to fears of further plunge.
Many investors aghast over the situation, who called this newspaper, expressed their deep anguish over the inaction of the government on various reports of misgovernance, recruitment scams , unwarranted asset sale and other issues of corruption and nepotism in the bank. A caller asked as to how the management of a listed company has been allowed to run the organisation through "illegally appointed" kith and kin.
Analysts at various money market and financial sites have already opined about the consequences of huge contingent liabilities and falling income and have predicted the share price of the bank to fall uptoRs 20 per share level in near future.