The PSU Bank index has declined 2% on Monday as heavy selling pressure witnessed in J&K Bank
, Allahabad Bank
, Bank of India
, Bank of Baroda
, and Union Bank
Shares of J&K Bank, which were plunged 15%, were leading the index’s fall. Shares of the bank tanked after the Jammu and Kashmir government removed the bank Chairman Parvez Ahmad
, and Anti-Corruption Bureau carried out a raid at the lender's corporate office in connection with alleged fraudulent appointments. The bank has received approval from the Reserve Bank of India to the appointment of R. K. Chhibber as interim Chairman & Managing Director of the Bank for a period of three months w.e.f. June 10, 2019.
Shares of Allahabad Bank and Bank of India also contributed to the fall, declining 3% each. Shares of Bank of Baroda, PNB, Union Bank, Canara Bank
, and Central Bank
also dropped 2% each. Shares of Indian Bank
, Syndicate Bank
, and Oriental Bank of Commerce
fell 2% each.
Meanwhile, markets were trading in the green on Monday with the Sensex rising 104 points at 39,722 levels. The Nifty gained 32 points to trade at 11,903 levels.