"Syndicate Bank has informed the Exchange that the central government (vide their letter dated 22.09.2014), in terms of Sub-Clause (1A) of Clause 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970/1980 has terminated the term of office of Shri Sudhir Kumar Jain as Chairman and Managing Director of the Bank with immediate effect," the bank said in a notice to the Bombay Stock Exchange (BSE).

Jain was arrested last month by the Central Bureau of Investigation on charges of taking bribes to sanction a loan to Bhushan Steel Ltd, as also of enhancing the credit limits of some other companies in violation of procedures.

Along with the sacked bank chairman, 11 others including the CMD and directors of Bhushan Steel and Prakash Industries have been booked by the CBI under relevant sections of Prevention of Corruption Act, 1988 and criminal conspiracy.

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