Disc: Was my largest holding but sold out early this year.
As much as shareholders we like the company. Any messenger of negative news should be more than welcome.
If you notice CBI has issued a press statement, clearly mentioning IPC sections and reason for the case and presence of incriminating documents. Looks like same customer was helped by twice when he was MD of Repco Bank and when he became MD of Repco Home Finance. The said company has been rotating the loan from Repco - City - Repco Home - IDBI. So prima facie, CBI has a case if they have found documents, which they claim.
Other issue is that even if nothing is found ultimately MD’s whole focus will shift in defending himself rather than running the company.
Note: Someone mentioned that CBI does not get involved in small cases. That is not true. For corruption cases, CBI anti-corruption cell does get involved in smallest cases if it comes under central government. Amount is immaterial in for corruption.