The Central Bureau of Investigation on Tuesday raided 10 locations in Jaipur, Udaipur and Delhi in connection with an alleged fraud of more than Rs 1,000 crore at Syndicate Bank. The locations that were raided include the bank's branches and the houses of employees. The agency is looking into the involvement of senior bank employees in the fraud, which involves using fake bills and providing overdraft limits against non-existent life insurance policies, reported Reuters.
The bank administration has not yet responded to the allegations. The state-run bank's shares were down 3.8% on Tuesday, compared with a 0.3% fall in the benchmark National Stock Exchange index, according to the report. In January, the bank had reported a net loss of Rs.119.67 crore for the quarter that ended on December 31, 2015. Livemint reported that before 2016, the bank last reported a loss in the December quarter of 2004.