Corporation Bank dropped 3.95% to Rs 49.80 at 12:15 IST on BSE after report suggested that the Central Bureau of Investigation registered 16 cases on complaints received from the bank related to alleged fraud.
Meanwhile, the S&P Sensex was down 106.72 points or 0.34% at 31,031.49. The S&P BSE Mid-Cap index was down 120.72 points, or 0.83% at 14,463.09.
On the BSE, 51,656 shares were traded on the counter so far as against the average daily volumes of 1.59 lakh shares in the past one quarter. The stock had hit a high of Rs 51.85 and a low of Rs 49.35 so far during the day. The stock had hit a 52-week high of Rs 64.70 on 5 May 2017 and a 52-week low of Rs 35.60 on 9 November 2016.
The stock has dropped 10.91% in four sessions to its ruling price from a close of Rs 55.90 on 20 June 2017.
The stock had underperformed the market over the past one month till 23 June 2017, rising 2.07% compared with 2.55% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 10.55% as against Sensex's 6.16% gains. The scrip had also outperformed the market in past one year, rising 26.16% as against Sensex's 15.32% gains.
The mid-cap bank has equity capital of Rs 229.41 crore. Face value per share is Rs 2.
The Central Bureau of Investigation has reportedly registered 16 cases on complaints received from Corporation Bank related to alleged fraud involving three branches at Vasant Vihar, Vasant Kunj and Aali in Delhi. Among the accused are then chief managers, senior managers and branch managers of the bank and some private persons.
Searches were conducted on Friday, 23 June 2017, at 13 places, including Delhi, Ghaziabad and Ahmedabad, at the premises of accused leading to recovery of documents.
This is in addition to three more cases of bank fraud in the Vasant Kunj branch of Corporation Bank. Searches were also conducted at 10 places on 1 June 2017.
It was alleged that a group of loanees floated various firms for the purpose of cheating the bank fraudulently by taking loans on the basis of fake or forged documents, report added.
Corporation Bank reported net profit of Rs 159.98 crore in Q4 March 2017 compared with net loss of Rs 510.97 crore in Q4 March 2016. Total income rose 9.8% to Rs 5730.49 crore in Q4 March 2017 over Q4 March 2016.
Government of India holds 70.77% stake in the bank (as on 31 March 2017).
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