Bank of Maharashtra hits record low as CMD gets arrested in DSK Group scam

The stock hit a record low of Rs 12.50, down 7% after the EOW arrested Ravindra P. Marathe, CMD, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group.

Shares of Bank of Maharashtra hit a record low of Rs 12.50 per share, falling 7% on the BSE in early morning trade after a media report suggested that the Economic Offences Wing (EOW) arrested Ravindra P. Marathe, the Chairman and Managing Director (CMD) of the bank, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group.

The EOW has also arrested the bank's Executive Director Rajendra K. Gupta, Zonal Manager Nityanand Deshpande from Ahmedabad and former CMD Sushil Muhnot from Jaipur, the IANS report suggested.

“R P Marathe, Managing Director & CEO, R K Gupta, Executive Director and another on officer of Bank has been called up by EOW, Pune at its office today for enquiry in relation to ongoing case of D.S.Kulkarni Developers. Subsequently, they have been granted police custody remain till 27.06.2018,” Bank of Maharashtra said in a clarification on news report.

The outstanding exposure of Bank of Maharashtra to D.S.Kulkarni Developers is Rs 945 million, it added.

In past one year, the stock of Bank of Maharashtra tanked 56% as compared to 14% rise in the S&P BSE Sensex.