Shares of Jammu and Kashmir Bank today nosedived over 18 per cent following a report that it had undeclared non-performing assets, or bad loans, of as much as Rs 2,500 crore.
The bank's shares, which opened at Rs 1,845 apiece on the BSE today, touched an intra-day low of Rs 1,472.25. The shares recovered some ground and ended at Rs 1,501.35.
The fall in share price was seen as a result of a report that alleged the bank concealed NPAs worth Rs 2,500 crore.
The report claimed that stressed loans were given to few firms in Kolkata, Delhi, Mumbai, Bangalore and Hyderabad.
A bank spokesman sought to dispel the apprehensions created by the report saying the NPAs of the bank were as per industry norms.
"As a responsible corporate, we have been following all the prudential guidelines as stipulated by the RBI for declaring sticky loans as NPAs or restructuring advances. Besides our restructured asset portfolio graph is witnessing a downward trend.
"Currently, it hovers around Rs 1,500 crore which is quite normal as per industry standards," the spokesman said.
He termed the report as "baseless".
"As far as the balance sheet of the bank is concerned it is being managed with prudence. Our prudent management of balance sheet can be substantiated by non-volatility of earnings for more than last 5 years; we have been showing a consistent growth in profits in highly stressed economic conditions from 2008 to 2013 when the whole industry was experiencing earning volatility," he added.