Syndicate Bank, Prakash Industries and Bhushan Steel tumble on buzz of CBI probe

Shares of Syndicate Bank, Prakash Industries and Bhushan Steel tumbled by 5.65% to 20% at 12:46 IST on BSE on reports the CBI has filed a case against Syndicate Bank Chairman Sudhir Kumar Jain in a bribery case.

Prakash Industries was locked at 20% lower circuit at Rs 89, Syndicate Bank (down 5.84% to Rs 136.20), and Bhushan Steel (down 5.65% to Rs 372.55), edged lower.

Meanwhile, the S&P BSE Sensex was up 133.81 points or 0.53% at 25,614.65.

As per the reports, the CBI has accused Syndicate Bank Chairman and Managing Director Sudhir Kumar Jain of taking Rs 50 lakh to increase the credit limits of Prakash Industries and Bhushan Steel.

Syndicate Bank's net profit rose 7.3% to Rs 485.42 crore on 16.9% growth in total income to Rs 5523.08 crore in Q1 June 2014 over Q1 June 2013.

The Government of India holds 67.39% stake in Syndicate Bank (as per the shareholding pattern as on 30 June 2014).

Prakash Industries' net profit surged 60.2% to Rs 62.36 crore on 19% growth in net sales to Rs 717.02 crore in Q4 March 2014 over Q4 March 2013.

Bhushan Steel reported a net loss of Rs 19.57 crore in Q4 March 2014 as against net profit of Rs 280.21 crore in Q4 March 2013. Net sales declined 10.9% to Rs 2399.73 crore in Q4 March 2014 over Q4 March 2013.

Bhushan Steel is India's third largest secondary steel producer with an existing steel production capacity of 2 million tones per annum (approximately).

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