J&K Bank breaches 20% LC

J&K Bank is the top loser on the BSE currently. The stock breached the 20% LC briefly at Rs.47.60; it has recouped from this low and is now some 13.5% down at Rs.51 levels. Its 52-week low is at Rs.35.05.

Once again the jitters on account of corporate governance issues. Over the weekend, the Chairman of the bank, Parvez Ahmad was sacked. Investigation agencies have found that he had sanctioned loans worth hundreds of crores of rupees in brazen violation of guidelines and standard operating procedures to clients recommended by former minister in the PDP government Imran Aftab Ansari and People’s Conference chief Sajjad Lone.

This sacking comes after the anti-corruption bureau concluded its two-day searches at the corporate office of the lender on Sunday.

The government, which owns majority stake in the bank, has said that the decision to sack Ahmad was part of long-term measures for improving functioning of the bank in accordance with RBI guidelines.