J&K Bank shares tumble 20 pc; hit lower circuit on removal of Chairman

Shares of J&K Bank plummeted nearly 20 per cent Mondayfollowing the removal of its Chairman Parvez Ahmad on Saturday.

The scrip tumbled 19.93 per cent to Rs 47.60 — its lower circuitlimit — on the BSE.

   

At NSE, shares plunged 19.94 per cent to hit a lower circuitof Rs 47.55.

On the volume front, 10 lakh shares were traded on the BSEand over 63 lakh shares exchanged hands on the NSE in early trade.

In a surprise move, the Jammu and Kashmir governmentSaturday removed J&K Bank Chairman Parvez Ahmad, and Anti-Corruption Bureaucarried out a raid at the lender’s corporate office in connection with allegedfraudulent appointments.

The government appointed the bank’s executive president R KChibber, as an interim chairman of the lender, and defended the decision tosack Ahmad, saying it was part of long term measures for improving functioningof the bank in accordance with the RBI guidelines.

“As a first step, the Government has decided to changeits nominee Director on the Board of J&K Bank, Parvez Ahmed, who is alsothe Chairman and Managing Director. Consequent to his replacement as agovernment appointed Director, the Board has taken on record cessation ofDirectorship of Parvez Ahmed as Chairman and Managing Director,” thespokesman had said.

Within minutes of the government order, sleuths ofAnti-Corruption Bureau — previously known as State Vigilance Organisation —raided the corporate headquarters of the bank situated at M A Road in Srinagar.

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