Syndicate Bank tanks 6% as CBI arrests CMD on allegations of bribery

Prakash Industries plunged 18% to Rs 91.50, while Bhushan Steel down 6% to Rs 370, also its 52-week low on NSE.

Syndicate Bank has tanked 6% to Rs 136 on NSE in otherwise firm market after the Central Bureau of Investigation (CBI) has arrested S K Jain, chairman and managing director (CMD) of the bank, for allegedly accepting bribes from private companies to extend credit facilities.

The CBI has filed two cases under prevention of corruption act and criminal conspiracy against Jain for allegedly receiving a bribe of Rs 50 lakh and "fraudulently bypassing" rules and regulations to enhance the credit limit of two companies, including Prakash Industries and Bhushan Steel, which have been involved in a multi-crore coal scam, reports suggest.

The stock opened at Rs 138 and touched a low of Rs 135 on NSE. A combined 1.7 million shares changed hands on the counter in early morning deals on BSE and NSE. Prakash Industries, too, plunged 18% to Rs 91.50, while Bhushan Steel down 6% to Rs 370, also its 52-week low on NSE.