Bank of Maharashtra hits new low

Bank of Maharashtra, not surprisingly, hit a new low at Rs.12.50, down over 7% and volumes are up over 2.3 times.

The stock has slid on news that the Economic Offences Wing of Pune police yesterday arrested six persons, including the serving and a former CMD of the Bank in a cheating case lodged against DS Kulkarni and his wife.

The bank’s present Chairman and Managing Director Ravindra Marathe, Executive Director Rajendra Gupta, Zonal Manager Nityanand Deshpande, bank’s former CMD Sushil Muhnot, Kulkarni’s CA Sunil Ghatpande, and Vice President Rajiv Newaskar of the engineering department of Kulkarni’s firm, DS Kulkarni Developers Ltd., were arrested.

The offence almost sounds like a rote read out from most of the banks – it has come to light that these bank officials colluded with DSKDL by misusing their powers and authority with dishonest and fraudulent intention to sanction and disburse the amount under the garb of a loan. Reminds one of ICICI Bank and PNB – the most recent ones.