Andhra Bank hits 14-yr low as ED files chargesheet against ex-bank official

The stock tanked 13% to Rs 33.60 on the BSE in intra-day deal, quoting at its lowest level since May 17, 2004.

Shares of Andhra Bank hit almost 14-year low to Rs 33.60, falling 13% on the BSE in early morning trade, after the media report suggested that the Enforcement Directorate (ED) on Friday filed a chargesheet against a former director of the state-owned bank in an alleged Rs 50 billion bank fraud case involving a Gujarat-based pharma firm. The stock is trading at its lowest since May 17, 2004, when it touched Rs 30 during intra-day trade.

The chargesheet, filed through ED's special public prosecutor Nitesh Rana, alleged that during the probe, the agency came across "certain entries" in a diary seized by the Income Tax Department in 2011 which showed various payments totalling about Rs 15.2 million made to one "Mr Garg, Director, Andhra Bank" by Chetan Jayantilal Sandesara and Nitin Jayantilal Sandesara, directors Sterling Biotech, between 2008 and 2009, the PTI report suggested. CLICK HERE TO READ FULL REPORT

At 09:39 am; the stock was trading 11% lower at Rs 34.45 on the BSE, as compared to 0.76% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 8.51 million shares changed hands on the BSE and NSE so far.

Sterling Biotech too locked in lower circuit of 5% at Rs 2.76 on the BSE. The stock is trading under Z group wherein their scrips would be settled on trade-for-trade basis. Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

The ‘Z’ group includes companies which have failed to comply with the listing requirements and/or have failed to resolve investor complaints and/or have not made the required arrangements with the depositories — CDSL and NSDL — for dematerialisation of their securities.