Shares of Jammu & Kashmir Bank crashed up to 20 per cent to hit their lower circuit limit of Rs 47.60 in early trade amid reports that the Jammu and Kashmir government had started investigations against the former J&K Bank chairman. Jammu & Kashmir Bank share price tanked 19.93% to hit an intra day low of 47.60 on BSE.
At 11:45 am, the share was trading 16.90% or 10.05 points lower at Rs 49.50 compared to previous close of 59.45 level on BSE.
Jammu & Kashmir Bank share opened at a loss of 19.26% to 59.45 on BSE.
Jammu & Kashmir Bank share has gained 31.30% since the beginning of this year and lost 15.82% during the last one year.
The state government is probing allegations that J&K Bank Chairman Parvez Ahmad during his tenure gave loans to people recommended by politicians, and placed his relatives in plum positions.
On Saturday, Jammu and Kashmir government removed J&K Bank Chairman Parvez Ahmad and appointed R K Chibber as interim chairman of the lender.
"Parvez Ahmad, Chairman cum Managing Director, shall cease to be Director on the Board of Directors of the Bank and consequently be no longer the Chairman cum Managing Director of the board," an order issued by Additional Secretary, Finance, Vishal Sharma said.
It added that R K Chibber has been appointed as the interim chairman and director on the board of directors. Chibber will replace Ahmad, who was appointed in 2016 as the chairman of the bank.
Edited by Aseem Thapliyal