UCO Bank Set For Biggest Drop Since 2003 as Former Chief Probed

Lester Mason
April 16, 2018

Shares of the company closed 6.49 per cent down at Rs 20.90 on BSE.

Shares of public-sector lender UCO Bank on Monday plunged to nearly 12-year low on the stock exchanges following the ongoing probe into an alleged Rs 737 crore loan fraud case.

On the NSE (National Stock Exchange), the UCO Bank stocks opened at Rs 20.60, then fell to its 52-week low of Rs 18.25 - down by 17.97 percent over its last closing price of Rs 22.25.

Shares of the Kolkata-based UCO Bank saw its biggest drop in over a decade after the Central Bureau of Investigation (CBI) booked the bank's former chairman Arun Kaul for allegedly cheating the bank.

State-owned UCO Bank slumped to almost 12-year low today after Central Bureau of Investigation (CBI) filed a case against former bank chairman Arun Kaul relating to an alleged Rs 621-crore bank loan fraud case on Saturday.

It is alleged that the accused persons in pursuance of a criminal conspiracy defrauded the UCO Bank to the tune of about Rs 621 crore by diversion and siphoning of the bank loans. The bank had reported losses for nine straight quarters through December 31 as it had to make provisions for soured debt that remains higher than the banking system's average. "The loan was not utilized for the sanctioned objective and was secured by producing false end use certificates issued by the chartered accountant and by fabricating business data", the CBI said.

India's federal police said on Saturday it has filed a case against a former chairman of state-run UCO Bank and several business executives alleging criminal conspiracy that caused a loss of 6.21 billion rupees (S$124 million).

Other reports by Iphone Fresh

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