State Bank Of India (SBI) Falls 1% On Kanishk Gold's Rs 842-Crore Fraud

The shares of State Bank of India (SBI) declined nearly 1% on the media reports that suggested that a financial fraud of massive proportions came to light on Wednesday. The SBI scrip had opened at Rs 252 on Wednesday on NSE, but fell as much to a low of Rs 247.10 in the intraday trading before closing at Rs 247.45, 0.66% lower than the previous session's closing on NSE. The share price is close to the 52-week low attained on October 19 last year at Rs 241.15. Similarly, on the BSE, the scrip fell by Rs 1.55,or 0.62% to close at Rs 247.70 against previous session's closing of Rs 249.25. The SBI scrip opened at Rs 251 but fluctuated between the maximum of Rs 254 and the lowest of Rs 247.20.

According to a media report, Kanishk Gold has defrauded a loan amount worth Rs 842.15 crore, lent by a SBI-led consortium of 14 public and private banks. State Bank of India has allegedly filed a complaint to the Central Bureau of Investigation (CBI) flagging the case, media report had added.

Other state run banks ended in green. Canara banks shares closed 1.18% higher than the previous session closing. Similarly, IndusInd Bank rose 1.07%, PNB shares rose 0.62%. However, Bank of Baroda fell by 0.40% on the NSE.

The case at State Bank of India (SBI) is one of the several fraud cases that have come to surface following similar cases against Nirav Modi involving PNB (Punjab National Bank) and Vikram Kothari involving Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Oriental Bank of Commerce and Union Bank of India.

Meanwhile, Punjab National Bank (PNB) is contemplating starting legal proceedings against the accused employees including Gokulnath Shetty to recover any money that they would have made illegally and parked abroad.