Bankia denies deposit pullout as shares plunge

Shares in troubled Spanish lender Bankia SA plunged 21.87 per cent today on reports that the customers have pulled €1 billion from the bank in the last week alone.

Bankia stocks had fallen by 11 per cent yesterday.

Spain's economy secretary Fernando Jiménez Latorre denied that the bank is suffering a run saying that Bankia has everything it requires to become a success.

''It is not true that there is an exit of deposits at this moment from Bankia'', he said.

Bankia's chairman Jose Ignacio Goirigolzarri said that depositors could remain 'absolutely calm'.

The Spanish government last week rescued Bankia in a turnaround of its earlier stance that no public money will be used to salvage the nation's banks laden with toxic assets (See: Spain to rescue major bank Bankia).