J&K Bank shares tank on news report on window dressing of accounts

Shares of Jammu & Kashmir Bank Ltd tanked by about 15 per cent on the back of a news report in a state newspaper that alleged that loans amounting to Rs 2,500 crore that should have been classified as NPAs have not been done so.

The report said that the NPAs could go up even higher to around Rs 4,000 crore if potential NPAs were also considered.

In its report,

Greater Kashmir , Srinagar, alleged that the bank’s "stressed assets of around Rs 2,500 crore'' were far higher than the Rs 783-crore gross NPA that J&K bank had shown in its balance sheet.

With other potential NPAs included, the bank’s gross NPA could balloon to nearly Rs 4,000 crore and the total NPA of J&K Bank could be "five times more of what the bank has shown, spiking the NPA ratio'', the report alleged quoting sources.

The report had an impact on the stock price with the shares losing 14.481 per cent or Rs 260.65 to Rs 1,577 on the NSE. The stock, which touched a high of Rs 1849, had slipped to a low of Rs 1,470.15 before pulling back.