Bank of Maharashtra shares crack over 7%, hit 52-week low

At 1.50 pm, the stock had partially recovered from its losses to trade 3.49% lower at Rs 13 on the BSE.

Shares of Bank of Maharashtra continued to fall for the second straight session today, dropping over 7% intra-day to hit a 52-week low, following the arrest of its serving and a former chairman and managing director in a cheating case.

The stock, after a weak opening, further fell 7.20% to Rs 12.50 its 52-week low-- as the session progressed on the BSE. On NSE, stock of the company tumbled 7.11 per cent to hit its one-year low of Rs 12.40. At 1.50 pm, however, the stock had partially recovered from its losses to trade 3.49% lower at Rs 13 on the BSE.

The Economic Offences Wing of Pune police on Wednesday arrested six people, including the serving and a former CMD of Bank of Maharashtra in a cheating case lodged against real estate developer D S Kulkarni and his wife, an official said.

The bank’s present chairman and managing director Ravindra Marathe, executive director Rajendra Gupta, zonal manager Nityanand Deshpande, and bank’s former CMD Sushil Muhnot, were arrested on Thursday.

Meanwhile in a statement, Bank of Maharashtra said its exposure to DS Kulkarni Developers was around Rs 94.52 crore, which was fully secured.

“Our total outstanding exposure to DS Kulkarni Developers is to the tune of Rs 94.52 crore which is fully secured with primary and collateral securities,” it said.