Shares in Dena bank and Oriental Bank of Commerce (OBC) fell as low as 5 per cent on Wednesday on reports that Mumbai-based branches of these banks have misappropriated funds to the tune of Rs 436 crore.
A newspaper report said the Union Finance Ministry has unearthed the scam and has ordered a forensic audit and has referred the case to the Central Bureau of Investigation (CBI).
As of 9.50 a.m. shares in OBC traded 3.12 per cent lower at Rs 265.40 and Dena Bank shares traded down 3.08 per cent at Rs 61.35 underperforming the Nifty which was down 0.06 per cent.
The report also weighed on other public sector banks. The PSU bank sub-index of Nation Stock Exchange was down over 1 per cent.
This report comes in the wake of the Central Bureau of Investigation (CBI) recently arresting Syndicate Bank chairman Sudhir Kumar Jain over an alleged bribery scam.
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