Central Bureau of Investigation has arrested S K Jain Chairman and Managing Director Syndicate Bank along with five others for allegedly accepting bribe from private companies to extend them credit facilities.

The agency had conducted raids across 20 locations in cities including Bangalore, Bhopal, Mumbai and Delhi today after registering a case in the matter. CBI confiscated an amount of Rs 50 lakh allegedly received by Jain as bribe. CBI spokesperson said, "Searches so far have led to recoveries of several asset papers and incriminating documents." Jain became CMD of Syndicate Bank on July 8, 2013. Prior to assuming charge as CMD, he was Executive Director of Bank of Baroda.

Jain, CBI has alleged enhanced the credit limit to certain private parties bypassing the rules and regulations. The said companies are believed to be embroiled in the coal scam, CBI has found. Beside Jain, his brother in law and chartered accountant are also in police custody.

Jain, a qualified as a chartered accountant started his banking career in June 1987 as a Credit Manager in Dena Bank and got elevated to various positions thereafter over the years.

Syndicate Bank reported a 7.3 per cent rise in net profit at Rs 485 crore for the first quarter-ended June, 2014 compared to Rs 452 crore in April-June 2013.

The total income of the bank rose by 16.8 per cent to Rs 5,523 crore as against Rs 4,726 crore in the same quarter last year. Lower provisions during the quarter, which stood at Rs 468 crore as against Rs 489 crore a year ago, helped the bank to show better profits.

Its net interest income was up 1 per cent at Rs 1,351 crore as against Rs 1,338 crore in the first quarter last year. The net interest margin declined to 2.47 per cent from 2.83 per cent a year ago.

Global deposits increased 17.72 per cent from Rs 1,82,513 crore as at Q1, FY 2013-14 to Rs 2,14,863 crore as at Q1, FY 2014-15. Global advances grew by 18.11 per cent to Rs 1,76,442 crore from Rs 1,49,383 crore. (Business Standard)