Syndicate Bank Slumps Most in Month After Bribery Charges

Syndicate Bank (SNDB), a state-run Indian lender, slumped the most in almost a month after the Central Bureau of Investigation accused its chairman of bribery.

The CBI registered two cases against Sudhir Kumar Jain, chairman and managing director of Syndicate Bank, and 11 others for violation of the country’s laws on corruption and criminal conspiracy, the investigative agency said in a statement on Aug. 2. Shares of the Bangalore-based lender slumped 6.9 percent, the biggest drop since July 8, to 134.35 rupees in Mumbai today.

Jain has been negotiating “for illegal gratification directly as well as through middlemen” in exchange for providing financial advantages to private companies, the CBI said in the statement.

Bhushan Steel Ltd. (BHUS) and Prakash Industries Ltd. (PKI) are the companies that sought favors from Jain, Kanchan Prasad, a New Delhi-based spokeswoman for the CBI, said by phone today. Bhushan Steel fell 3.6 percent to 378.55 rupees, the lowest level since March 2012. Prakash Industries tumbled 20 percent in the steepest drop since January 2001.

Phone calls made to officials at Bhushan Steel, Prakash Industries and Jain’s office weren’t answered today.

To contact the reporter on this story: Anto Antony in Mumbai at aantony1@bloomberg.net

Photographer: Dhiraj Singh/Bloomberg

Sudhir Kumar Jain, chairman and managing director of Syndicate Bank. Close

Sudhir Kumar Jain, chairman and managing director of Syndicate Bank.

Close
Open
Photographer: Dhiraj Singh/Bloomberg

Sudhir Kumar Jain, chairman and managing director of Syndicate Bank.

To contact the editors responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net Russell Ward, Sam Nagarajan

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.