Oriental Bank of Commerce falls 9% on talks of Rs 3.9 billion scam

The stock slipped 9% to Rs 96.20, also its fresh 52-week low on the BSE.

Oriental Bank of Commerce (OBC) has slipped 9% to Rs 96.20, also its fresh 52-week low on the BSE, after the media report suggested that the state-owned lender has alleged the firm, Dwarka Das Seth International, for fraudulent loan scam, involving Rs 3.90 billion.

The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based jeweller on a complaint from government-owned OBC, the Business Standard reported.

The jewellery firm cheated the bank with the help of some of its officials, using Letters of Credit (LCs) — a banking instrument similar to those used by a group