Financials News

Post bank scams, Sensex tanks 462.10pts

Post bank scams, Sensex tanks 462.10pts

Mumbai/Kanpur [India]: Market indices took a significant plunge in Monday morning trade amid a fresh round of bank scams.

The BSE’s Sensex saw a 462.10-point dip at 33,835.37, while the Nifty traded 146.75 points lower at 10,399.65.

Sectoral indices were trading in red, with the public sector unit (PSU) bank index recording a two percent fall.

Allahabad Bank shares traded 5.38 percent lower, followed by Union Bank, Punjab National Bank and Syndicate Bank trading 4.77, 4.10, and 3.53 percent lower, respectively.

Meanwhile, the Indian rupee opened at 63.90 against the dollar.

On Sunday, the Central Bureau of Investigation (CBI) conducted searches at the Brassy House branch of the PNB in connection with the billion-dollar fraud case involving noted jewellery designer Nirav Modi and others.

As per CBI sources, the investigative agency also questioned concerned officials of the billionaire businessman’s company and five more officials of the PNB, including the then general manager of the bank in the said case.

The PNB has lodged two financial fraud complaints of Rs. 11400 crore and Rs 280 crore against Nirav Modi, his family members and Mehul Choksi, owner of Gitanjali Gems.

Meanwhile, the CBI has also filed a case against Vikram Kothari, the owner of Rotomac Pens, and raids are underway at his Kanpur residence.

On Sunday, reports surfaced that Kothari was allegedly ‘missing’ from Kanpur in possession of a bank loan worth Rs. 837 crore.

Kothari had taken a loan worth Rs. 352 crore from the Kanpur branch of Allahabad Bank and Rs. 485 crore from three other banks, namely Bank of Baroda, Indian Overseas Bank, and Union Bank of India. (ANI)