Oriental Bank of Commerce falls 9% on talks of Rs 3.9 billion scam

Oriental Bank of Commerce (OBC) has slipped 9% to Rs 96.20, also its fresh 52-week low on the BSE, after the media report suggested that the state-owned lender has alleged the firm, Dwarka Das Seth International, for fraudulent loan scam, involving Rs 3.90 billion.
The Central Bureau of Investigation (CBI) has registered a case against a Delhi-based jeweller on a complaint from government-owned OBC, the Business Standard reported.

The jewellery firm cheated the bank with the help of some of its officials, using Letters of Credit (LCs) — a banking instrument similar to those used by a group of companies belonging to Nirav Modi and Mehul Choksi to allegedly defraud Punjab National Bank of Rs 114 billion, added report.

An LC is an obligation accepted by a bank to make a payment if specified criteria are met.
At 09:29 am; the stock was trading 8.8% lower at Rs 96.50 on the BSE as compared to 0.48% rise in the S&P BSE Sensex.

A combined 7.21 million shares changed hands on the counter on the BSE and NSE so far.