J&K Bank hits 10-year low after reports of raid at ex-chairman’s residence

Jammu and Kashmir Bank’s shares fell 10 percent intraday on June 19 after former chairman Parvez Ahmed Nengroo’s residence was raided by Anti-corruption Bureau (ACB).

The stock touched a day’s low of Rs 33.50, the lowest price since May 2009. At 1238 hours IST, it was quoting at Rs 34.40, down Rs 2.80, or 7.53 percent on the BSE.

The government on June 8 had removed Parvez Ahmad and appointed its executive president RK Chibber as an interim chairman. The preliminary investigations had revealed the involvement of Ahmed in corruption, nepotism, and favoritism.

Ahmed was removed by the state government, he was appointed as chairman and CEO of J&K Bank in October 2016 and his tenure was to end in a few months.