UCO Bank’s shares slip to almost 12-year low on loan fraud claims

By Sarkaritel April 16, 2018 20:15

Mumbai, April 16  Shares of public-sector lender UCO Bank on Monday plunged to almost 12-year low on the stock exchanges following the ongoing probe into an alleged Rs 737 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.

CBI officials on Sunday had said they will 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 has caused a loss of over Rs 737 crore to the bank.

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

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


By Sarkaritel April 16, 2018 20:15