Mumbai, Jun 10 (IANS): Shares of Jammu and Kashmir Bank settled 12 per cent lower after its Chairman and Managing Director Parvez Ahmed was removed by the state government on Saturday on charges of nepotism and corruption.

The state Anti-Corruption Bureau (ACB) also carried out a raid at the bank's corporate office in Srinagar for two days after the Ahmed's removal.

ACB officials said documentary evidence regarding the mismanagement, nepotism and corruption by the ousted Chairman were collected and investigation was on.

The bank's shares on the BSE closed at Rs 52.25, lower by Rs 7.20 or 12.11 per cent from it previous close. Earlier in the day, the shares slumped nearly 20 per cent to an intra-day low of Rs 47.60 per share.

On Monday, the bank said that it has received the Reserve Bank's approval to appoint R.K. Chhibber as the interim Chairman and Managing Director of the bank for a period of three months with immediate effect.

It also said that the board of directors in their meeting held on June 8, 2019, had recommended the splitting of the post of Chairman and Managing Director of the bank in compliance to the SEBI regulations and RBI guidelines.