Shares of Jammu and Kashmir Bank on Friday nosedived over 18 per cent following a report that it had undeclared non-performing assets, or bad loans, of as much as Rs.2,500 crore.
The bank’s shares, which opened at Rs.1,845 on the BSE, touched an intra-day low of Rs.1,472.25. The shares recovered some ground and ended at Rs.1,501.35.
The fall in share price was seen as a result of a report that alleged the bank concealed NPAs worth Rs.2,500 crore.
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The report claimed that stressed loans were given to few firms in Kolkata, Delhi, Mumbai, Bangalore and Hyderabad.
A bank spokesman sought to dispel the apprehensions created by the report, saying the NPAs of the bank were as per industry norms.
“As a responsible corporate, we have been following all the prudential guidelines as stipulated by the RBI for declaring sticky loans as NPAs or restructuring advances. Besides our restructured asset portfolio graph is witnessing a downward trend. Currently, it hovers around Rs.1,500 crore, which is quite normal as per industry standards,” the spokesman said. He termed the report as ‘baseless’.
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“As far as the balance sheet of the bank is concerned, it is being managed with prudence ,” he added.