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Pahalgam Terror: Jammu and Kashmir Bank (J&K Bank) topped the losers’ list on the NSE today. Its stock plummeted nearly 20%, hitting the lower circuit limit. The sharp fall came after the Jammu and Kashmir government removed Chairman Parvez Ahmad. An Anti-Corruption Bureau raid at the bank’s corporate office also shook investor confidence.
The stock fell 19.93% to Rs 47.60 on the BSE. On the NSE, it dropped 19.94% to Rs 47.55. The steep decline triggered panic among investors and created widespread uncertainty.
Internal Struggles: A Recipe For Stock Turmoil
The government appointed R K Chibber, the bank’s executive president, as the interim chairman, in what was described as a long-term measure to realign the bank with RBI guidelines. But no amount of leadership changes could calm the storm brewing in the stock market. The sudden raid by the Anti-Corruption Bureau, in connection with alleged fraudulent appointments, didn’t help matters, sending investors into a state of financial panic. This was the latest twist in a year full of turmoil for J&K Bank, with its stock price taking a hit from all angles.
GST Demands And Terror Tensions Make Matters Worse
Adding fuel to the fire, the bank also faced a massive GST demand of Rs 16,322 crore earlier this year, including hefty penalties. That demand was higher than the bank’s market capitalization, further aggravating the anxiety among investors. The bank has maintained that the demand is unjustified and believes it has a strong legal case, but this news has only heightened investor apprehension.
Terror Attack In Pahalgam Adds Uncertainty To The Mix
Meanwhile, in the aftermath of the deadly terrorist attack in Pahalgam on April 22, which claimed 26 lives, the region is on high alert. This attack, one of the deadliest in recent years, has drawn the attention of both national and international media, highlighting ongoing security challenges in Jammu and Kashmir. With the army intensifying counter-terror operations, businesses in the region, including J&K Bank, are left trying to navigate a stormy mix of internal governance issues and escalating security concerns.
The Perfect Storm: Governance Woes + Terror Tensions
The combination of J&K Bank’s internal governance issues, the raid, and the ongoing security situation in the region has created a perfect storm, dragging the bank’s stock to new lows. Investors are wary, and the fear is palpable. As the dust settles, it remains to be seen how both the bank and the region will recover from this double whammy of governance issues and terror-induced volatility.
