Shares of Jammu and Kashmir Bank were trading in the red and 3% lower on 30 November after reports hit that the Enforcement Directorate (ED) conducted searches at six places of the lender in a Rs 250 crore money laundering case.

However, later, the bank clarified that their name was inadvertently used instead of J&K State Cooperative Bank.

The lender said, “We would like to clarify to all stakeholders that the news item does not pertain to J&K Bank in any manner.”

According to the reports, the ED conducted searches at multiple premises, including that of a former bank chairperson. The fraud was committed in the name of a fictitious housing society, “the River Jhelum Cooperative Housing Building Society”. The ED’s Srinagar office conducted the raids under the Prevention of Money Laundering Act.

In its quarterly report for July-September, the bank reported a 56% year-on-year (YoY) increase in its net profit to Rs 381 crore.

The bank’s net interest income stood at Rs 1,333.8 crore, marking an 11% YOY increase from the previous year.

At 3:30 pm, the shares of Jammu and Kashmir Bank closed 0.77% lower at Rs 109.35 on NSE.