BoB goes red faced

Understandably, Bank of Baroda is down amongst the top losers on the BSE, down 4.5% at Rs.174 with an intra day low at Rs.168. Its 52-week low is at Rs.137.50.

The ongoing CBI raids on the banks Rs.6000 crore forex violation has pushed the stock deep into the red. On Sunday, CBI raided 50 more locations in connection with Bank of Baroda's north Delhi branch's alleged foreign exchange act violation.

The transfer of money from BoB was made to Hong Kong by Baks officials, as per preliminary investigations between August 1, 2014 and August 12, 2015.  It is being alleged that there were 8,667 forex transactions from the Ashok Vihar, Delhi branch of the bank, prompting a probe.

This forex violation, especially in the wake of black money being coaxed out of the system, that too by a PSU bank is truly shocking, indicative of the deep rooted rot.