Shares of J&K Bank plummeted nearly 20 per cent Monday following the removal of its Chairman Parvez Ahmad on Saturday.

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The scrip tumbled 19.93 per cent to Rs 47.60 -- its lower circuit limit -- on the BSE.

At NSE, shares plunged 19.94 per cent to hit a lower circuit of Rs 47.55.

On the volume front, 10 lakh shares were traded on the BSE and over 63 lakh shares exchanged hands on the NSE in early trade.

In a surprise move, the Jammu and Kashmir government Saturday removed J&K Bank Chairman Parvez Ahmad, and Anti-Corruption Bureau carried out a raid at the lender's corporate office in connection with alleged fraudulent appointments.

The government appointed the bank's executive president R K Chibber, as an interim chairman of the lender, and defended the decision to sack Ahmad, saying it was part of long term measures for improving functioning of the bank in accordance with the RBI guidelines.

"As a first step, the Government has decided to change its nominee Director on the Board of J&K Bank, Parvez Ahmed, who is also the Chairman and Managing Director. Consequent to his replacement as a government appointed Director, the Board has taken on record cessation of Directorship of Parvez Ahmed as Chairman and Managing Director," the spokesman had said.

Within minutes of the government order, sleuths of Anti-Corruption Bureau -- previously known as State Vigilance Organisation -- raided the corporate headquarters of the bank situated at M A Road in Srinagar.