Canara Bank in bad spotlight

Canara Bank is in the limelight for all the wrong reasons. The stock is among the top five losers on the BSE, going down over 5% to Rs.251. Its 52-week low is at Rs.225.35.

The CBI, yesterday, charged the former chairman and managing director, R.K. Dubey, and two executive directors of the Canara Bank of cheating and forgery in the alleged loan default of over Rs.68 crore sanctioned in 2013.

The CBI has alleged that it has found evidence of direct communication between RK Dubey and top officials of Occasions Silver Private Limited (OSPL), which deals in wholesale of diamond and gold jewellery. CBI stated that it has text messages from the CMD directing subordinate officers to favour the said company while disbursing the loan.