J&K Bank Shares Dip 3% Amid ED Raids in Rs 250 Crore Money Laundering Case

30 Nov 2023 , 02:47 PM

Jammu & Kashmir (J&K) Bank’s stock witnessed a 3% decline on November 30 following reports of Enforcement Directorate (ED) searches at six locations linked to the bank in a Rs 250-crore money laundering case.

By the afternoon of November 30, 45 lakh shares had been traded on the BSE and NSE, exceeding the weekly average of 28 lakh shares. Over the past three months, the private sector lender’s stock has surged by 29%, contrasting with the 2.5% rise in the benchmark Sensex.

ED conducted searches, including at the premises of a former bank chairperson, related to a fraud involving a fictitious housing society called the River Jhelum Cooperative Housing Building Society. The raids were carried out by the ED’s Srinagar office under the Prevention of Money Laundering Act (PMLA).

In the September quarter, J&K Bank reported a 56% YoY increase in net profit to Rs 381 crore, with net interest income rising by 11% to Rs 1,333.8 crore. The gross non-performing assets (NPA) stood at 5.2%, an improvement from 5.7% in Q1FY24.

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