Bharat Financial plunges 10% after top official's arrest

NEW DELHI: Shares of Bharat Financial today fell nearly 10 per cent after its President S Dilli Raj was arrested by the Enforcement Directorate as part of an investigation.

"Bharat Financial Inclusion Limited, formerly known as SKS Microfinance Limited, hereby intimates that it has come to its knowledge that its President S Dilli Raj has been arrested by the Enforcement Directorate in respect of an ongoing investigation in a complaint filed by IDBI Bank against First Leasing Company of India," the company said in a regulatory filing on Monday.

Following this, the stock of the company opened on a weak note, lost further ground and touched an intra-day low of Rs 814.05. It closed at Rs 822.20, down 9.73 per cent, on BSE.

On NSE, the stock opened at Rs 820 and settled at Rs 822.65, down 9.66 per cent.

The company, however, said the investigation does not in any way relate to the present company, Bharat Financial Inclusion.

Dilli Raj had earlier issued a personal statement on October 19, 2015, that he had resigned from First Leasing on November 22, 2007 and was relieved on January 18, 2008.

He stated that all loans taken during his tenure have been repaid by First Leasing and that the complaint filed by IDBI Bank relates to loans sanctioned during 2012 and 2013, which was six years after he ceased to be an employee of First Leasing.

Dilli Raj also clarified that his role was confined to treasury operations and he did not authenticate or sign any financial statements of First Leasing.

Meanwhile, global brokerage Credit Suisse has reportedly downgraded the stock to 'underperform' from 'neutral', which dampened investor sentiment further.