Monday, July 23, 2018
News

UCO Bank's shares slip to 12-year low on loan fraud claims (Second Lead)

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai/Kolkata | Monday, 2018 7:45:04 PM IST
Shares of public sector lender UCO Bank on Monday plunged to almost a 12-year low on the stock exchanges following the ongoing probe into an alleged multi-crore loan fraud case.

During the day's trade, shares of the bank on the BSE slipped by 14.32 per cent to hit a new 52-week low of Rs 19.15 per share -- the lowest level since September 2006.

Shares of the state-run bank closed at Rs 20.90 per scrip -- down 6.49 per cent -- from its previous session's close.

On the NSE, the bank's shares hit the lowest since August 2006.

It nosedived by 17.98 per cent to a fresh 52-week low of Rs 18.25 per share. On a closing basis, the shares declined by 6.29 per cent and closed at Rs 20.85 per scrip.

The state-run lender filed a complaint with the Central Bureau of Investigation (CBI) on April 11, 2018, against Era Infra Engineering Ltd in view of irregularities reported in their accounts with the bank.

"With regard to material impact, we inform that as on March 31, 2018, the Era Infra Engineering Ltd has a total exposure of Rs 757.53 crore in our bank. The account was categorised as non-performing asset since July 1, 2013 onwards," the UCO Bank said in a regulatory filing on Monday.

The lender also said the bank is holding 100 per cent provision against the account and that there is no additional material impact.

The CBI officials had on Sunday said they would soon question the bank's former Chairman and Managing Director (CMD) Arun Kaul in connection with its ongoing probe into the loan fraud case.

Earlier, the agency had filed a case against Kaul, Era Engineering Infra India (EEIL), its CMD Hem Singh Bharana, two chartered accountants -- Pankaj Jain and Vandna Sharda -- and Pawan Bansal of Altius Finserve, among others, in connection with the alleged Rs 621 crore loan fraud which caused a loss of over Rs 737 crore to the bank.

The accused persons had hatched a criminal conspiracy and allegedly defrauded the UCO Bank of about Rs 621 crore by diversion and siphoning off two bank loans.

According to the CBI officials, Kaul, who was the CMD of UCO Bank between 2010 and 2015, had allegedly facilitated the accused company in obtaining the loan.

--IANS ppg-bdc/nir

( 397 Words)

2018-04-16-19:06:09 (IANS)

Loading...
 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE BUSINESS NEWS
CSS Corp positioned in Winner's Circle i...
China to begin anti-dumping probe into s...
Expectations of positive Q1 results, low...
G20 leaders recognise trade tensions, ca...
Atos to acquire US IT firm Syntel for $3...
Bengal tea garden strike on hold in wake...
More...
 
INDIA WORLD ASIA
Prepare for elections alone: Amit Shah t...
Hero dog saves owner from lions in Gujar...
Goa Opposition forces adjournment,critic...
Cows safe, but India most unsafe for wom...
Two killed, three injured in roof collap...
AAP hails SC ruling on lifting ban on ho...
More...    
 
 Top Stories
'Mamma Mia...' to arrive in India o... 
Alwar lynching: Police to probe del... 
UP to present 'vision document' on ... 
Premier train passengers don't thin... 
TDP MP dresses up as Annamayya to p... 
Alwar lynching: Rahul attacks PM Mo... 
'Dhadak' mints Rs. 33.67 cr. in ope... 
Telangana announces 9,200 vacancies...