Syndicate Bank shares slump 7 per cent as Chairman arrested for taking bribe

Shares in Syndicate Bank fell as much as 7 per cent, after the Chairman and Managing Director of the Bank was arrested for taking a bribe. The stock was last trading at Rs 134.50 on the National Stock Exchange.

PTI reported that The Central Bureau of Investigation (CBI) on Saturday arrested Chairman-cum- Managing Director of Syndicate Bank, S K Jain and five others for allegedly taking bribe of Rs 50 lakh for enhancement of credit limit to some companies bypassing rules and regulations.

Acting on an internally developed intelligence, CBI had been monitoring the CMD for the last six months before arresting him Saturday in Bangalore.
CBI has filed two cases against him for allegedly receiving bribe of Rs 50 lakh and "fraudulently bypassing" rules and regulations to enhance credit limit of two companies which have been involved in a coal scam.

"We are determined to fight corruption at high level and today's case was one such example," CBI Director Ranjit Sinha told PTI. Others arrested included CMD's brother-in-law and a Chartered Accountant.
CBI is conducting searches at 20 places in four cities in connection with the case.

With inputs from PTI