Jian was suspended on Monday from his job and post, just two days after the CBI arrested him Financial Services Secretary G.S Sandhu said the Finance Ministry received a preliminary report from the CBI on the arrest of Mr. Jain on Saturday, based on which he was suspended.Mr. Jain, 54, was appointed CMD of state-owned Syndicate Bank in July last year for a period of five years. He was one of the youngest CMDs of a public sector bank and was due to retire in 2020.
The bank has put to executive directors in charge to ensure smooth operations of the bank till they appoint a new chairman.
Jain, along with seven other accused were remanded in CBI custody. The CBI alleges that Jain negotiated with Bhushan Steel for an illegal gratification of Rs 50 lakh in return for granting credit extension to that company as it had defaulted on the payment of loan instalments amounting to crores of rupees to the bank. The CBI also alleges him of being involved in smiliar malpractise with Prakash Industries.
The stock of Syndicate Bank is flat today after slumping 7% on Monday.