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UCO Bank Shares Crash 14% After CBI Books Ex-Chief In Loan Fraud Case

UCO Bank share prices traded in the range of Rs 20.80 to Rs 19.15 today on the BSE.

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UCO Bank Shares Crash 14% After CBI Books Ex-Chief In Loan Fraud Case

Bombay Stock Exchange or BSE has sought clarification from UCO Bank on this matter.


Shares of UCO Bank slumped 14 per cent today after Reuters reported that the Central Bureau of Investigation (CBI) has filed a case against a former chairman of the state-run bank and several business executives alleging criminal conspiracy that caused a loss of Rs 621 crore. Bombay Stock Exchange or BSE has sought clarification from UCO Bank on this matter, According to Reuters, CBI said officials at the bank had colluded with private infrastructure firm Era Engineering Infra, and investment banking firm Altius Finserve Pvt to siphon bank loans.

UCO Bank shares traded in the range of Rs 20.80 to Rs 19.15 today on the BSE. At 11.41 am, shares of UCO Bank were down 8 per cent to Rs 20.60.

CBI, according to Reuters, said in a statement that Arun Kaul, the bank's chairman between 2010-2015, had helped clear the loan.

In the UCO Bank case, Reuters reported that CBI charged Kaul and several officials and accountants at the two companies with criminal conspiracy with an intention to defraud the bank of about Rs 621 crore by diverting and siphoning loans.

"The loan was not utilized for the sanctioned purpose and was secured by producing false end use certificates issued by the chartered accountant and by fabricating business data," the CBI said.

Another state-run lender PNB had in February disclosed that companies owned by two jewellers defrauded it by raising credit from overseas branches of other Indian banks, using illegal guarantees issued by staff at a Mumbai PNB branch over several years. The fraud was pegged at over Rs 12,000 crore.

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