Axis Bank slumps and tumbles

Axis Bank is once again in the news and this time for the wrong reasons. The third largest private sector, for the second time around within a week, has undergone one more IT raid. This time the IT department is alleged to have found Rs.100 crore deposited in 44 fake accounts at its Delhi, Chandi Chowk branch.

The Bank has said that is co-operating with the authorities and investigative work is underway. Meanwhile the Bank has suspended its 19 officials allegedly involved in illegal activity post demonetisation. 

Prior to this, the Enforcement Directorate arrested two Axis Bank managers in New Delhi and seized 3 kg gold bars in connection with its money laundering probe in a racket of illegally converting old notes in connivance with banking authorities.

While rumours about the Bank’s IT raids have spooked the market, there is no truth in the news that its banking license is to be cancelled.

The stock was down in the red over 3.5% at Rs.440 and has since then recovered to Rs.449 levels, down now 1.5%.