Canara Bank shares tumble after police file charges in new fraud case

Mumbai: Shares in India’s Canara Bank tumbled more than 5 per cent on Tuesday morning after the country’s federal police filed charges against a former chairman of the state-run bank and others over allegations that the officials helped a company defraud the bank of about $10.5 million taken in loans over four years ago.

By 0405 GMT, shares in the bank were down 3.80 per cent at 254.15 rupees after earlier falling to a low of 250 rupees.

The case is the latest in a string of bank frauds reported to authorities in the aftermath of a sprawling $2 billion fraud that was unearthed weeks ago at Punjab National Bank.