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.