J&K Bank crashes 20% amid investigations against chairman

NEW DELHI: Shares of Jammu & Kashmir Bank plunged 20 per cent to hit their lower circuit limit of Rs 47.60 in Monday's session amid reports that the Jammu and Kashmir government had started investigations against the former J&K Bank chairman.

ET reported that the Jammu and Kashmir government had started investigations against a web of operations surrounding former J&K Bank chairman Parvez Ahmed Nengroo.

The Jammu and Kashmir government removed J&K Bank Chairman Nengroo and the raids were conducted following allegations that he offered loans worth crores to people recommended by politicians, placed his relatives in plum positions, and for even diverting funds meant for the bank’s corporate social responsibility (CSR) initiative for the beautification of Royal Spring Golf Course –– a rendezvous of the elite.


The J&K anti-corruption bureau (ACB) is said to have seized around 300 files pertaining to illegal and fraudulent appointments in the bank by Nengroo during PDP rule in the state.

In a BSE filing, the bank said its Chairman cum Managing Director R.K Chhibber and the management team will hold a conference call with the investors today.

The shares of the company closed 12.11 per cent lower at Rs 52.25 on BSE.