Jammu & Kashmir Bank shares tumble 13% at close of trade; hit lower circuit on removal of chairman Parvez Ahmed

New Delhi: Shares of J&K Bank ended with a sharp loss of nearly 13 percent Monday following the removal of its Chairman Parvez Ahmed on Saturday.The scrip dived 12.11 percent to close at Rs 52.25 on the BSE. During the day, it tumbled 19.93 percent to Rs 47.60 -- its lowest trading permissible limit -- for the day.At NSE, shares cracked 12.71 percent to close at Rs 51.85.In terms of traded volume, 13.66 lakh shares were traded on the BSE and over 89 lakh shares exchanged hands on the NSE during the day.The company's market valuation fell by Rs 400.41 crore to Rs 2,909.59 crore on the BSE.[caption id="attachment_4342983" align="alignleft" width="380"]

Representational image. Getty[/caption]In a surprise move, the Jammu and Kashmir government Saturday removed J&K Bank Chairman Parvez Ahmed, and Anti-Corruption Bureau carried out a raid at the lender's corporate office in connection with alleged fraudulent appointments.The government appointed the bank's executive president RK Chibber, as an interim chairman of the lender, and defended the decision to sack Ahmed, saying it was part of long term measures for improving the functioning of the bank in accordance with the RBI guidelines."As a first step, the Government has decided to change its nominee Director on the Board of J&K Bank, Parvez Ahmed, who is also the Chairman and Managing Director. Consequent to his replacement as a government-appointed Director, the Board has taken on record cessation of Directorship of Parvez Ahmed as Chairman and Managing Director," the spokesman had said.Within minutes of the government order, sleuths of Anti-Corruption Bureau -- previously known as State Vigilance Organisation -- raided the corporate headquarters of the bank situated at MA Road in Srinagar.Jammu & Kashmir government holds 59 percent stake in J&K Bank.