Syndicate Bank tanks under wieght of corruption

The top loser currently on the BSE is Syndicate Bank, down 8.6% at Rs.132.75, with an intra day low at Rs.132.25. Volumes are up almost 2 times.

The stock has tanked, reacting to the news over the weekend of its CMD, Mr.S K Jain being arrested by the CBI for allegedly accepting bribes from private sector companies for extending credit facilities.  Mr.Jain is stated to have received bribes to the tune of Rs.50 lakh for fraudulent bypass of rules and regulations, benefitting two companies – Prakash Industries and Bhushan Steel. Both these stocks have, not surprisingly tanked. This is not their first brush with the law – both these companies were also named in the coal scam.