CEO of Bank of Maharashtra Held for ‘Misuse of Power’ –Bank Plunges 7%
On Thursday, the shares of Bank of Maharashtra plunges up to 7 % for the second straight session as the Pune Police arrested Chief Executive Officer Ravindra Marathe and executive director of the bank. They were accused for misusing their authority in making loans to a property developer.
Today, the scrip plunged to 7 per cent to Rs 12.50 in early trade. On Wednesday, the bank stated that the loans were sanctioned to DS Kulkarni Developers as per the lending norms and the lender was in the process of recovering the loans.
As of Wednesday’s close, the shares of Bank of Maharashtra had declined over 40 per cent in this year.
The former CMD of Bank of Maharashtra was also nabbed from Jaipur. Pune Police confirmed that all the accused have been sent to custody till June 27. It is believed by the economic offences wing of Pune Police that the arrested officials colluded with promoters of the DSK Group for alleged fraudulent transactions. It is also claimed that the bank officials misused their positions to sanction loans worth Rs 60 crore in two tranches.