Bank of Maharashtra’s shares tank 7% after CMD, 5 others arrested in fraudulent loans case

The lender’s Chairman and Managing Director (CMD) Ravindra Marathe along with five others have been arrested for extending fraudulent loans to Pune-based DSK Group, police said.

Bank of Maharashtra’s shares fell 7 percent intraday after a member of its senior management was arrested on Wednesday.

The stock touched an intraday high of Rs 13.65 and an intraday low of Rs 12.60.

The lender’s Chairman and Managing Director (CMD) Ravindra Marathe along with five others have been arrested for extending fraudulent loans to Pune-based DSK Group, police said.

Besides Marathe, BoM Executive Director Rajendra Gupta, DSK chartered accountant Sunil Ghatpande and DSK VP Engineering Department Rajiv Newaskar were arrested from Pune while ex-CMD Sushil Muhnoot was arrested from Jaipur. The bank’s Zonal Manager Nityanand Deshpande was arrested from Ahmedabad, the police said in a statement.

Marathe was arrested for allegedly misusing his power in sanctioning loans to shell companies. The bank had given loan on the same property three to four times, sources said.

The arrests were made under sections 120(B), 406, 409, 420, 465, 467, 468, 471, 109 r/w 34 IPC & 13(1)(c) r/w 13(2) of the PC Act.

According to a police statement, the bank officers colluded with DSKDL by misusing their power and authority with dishonest and fraudulent intention to sanction and disburse the amount of bank under the garb of loan which was siphoned off.

The stock has fallen around 4 percent in the past one month, while in the past three days, it fell over 3.5 percent too. At 14:49 hrs Bank of Maharashtra was quoting at Rs 13.04, down Rs 0.47, or 3.48 percent. It touched a 52-week low of Rs 12.60.

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