Informed sources said simultaneous raids were on at Ahmed's office located in the corporate headquarters of the Bank and his residence.
There was no official word on the reasons for Ahmed's sacking or the grounds for the raids.
A government order issued on Saturday said: "Parvez Ahmed shall cease to be Director on the Board of Directors of the Bank and consequently be no longer the chairman cum managing director of the board.
The order addressed to the company secretary of the bank comes into effect immediately.
This is the only private sector bank designated as the Reserve Bank of India's agent for banking business and carries out the banking business of the Central government besides collecting central taxes for CBDT.
The bank was incorporated in 1938 and is listed on the NSE and BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)