BackDena Bank, Oriental Bank of Commerce fall on reports of misappropriation of funds
Shares fall as much 5.5% and 4.72%, respectively, as reports allege misappropriation of funds
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Mumbai: Shares of Dena Bank and Oriental Bank of Commerce fell as much as 5.5% and 4.72%, respectively, after the finance ministry ordered a forensic audit in connection with alleged misappropriation of funds.
The audit was ordered after an inquiry revealed that some managers using middlemen issued fake fixed deposits and then used them to grant loans.
On Wednesday, DNA newspaper reported that the government fears the Mumbai-based branches of Oriental Bank of Commerce and Dena Bank had misappropriated funds to the tune of ₹ 436 crore. The case has been referred to the Central Bureau of Investigation (CBI), the report said.
Oriental Bank of Commerce managing director S.L. Bansal told CNBC channel that the bank had recovered ₹ 110 crore of the ₹ 180 crore that was allegedly misappropriated and the same has been reported to finance ministry.
The bank has started taking action against the people involved, he added.
Shares of Dena Bank closed 5.06% lower at ₹ 60.10 a piece on BSE, while Oriental Bank of Commerce fell 3.63% to ₹ 264. The benchmark Sensex shed 0.40% to 26,314.29 points.
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