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UCO Bank shares crash to nearly 12-year low as CBI books ex-CMD in Rs 621 crore loan fraud

image Following the jitters over the fraud, shares of UCO Bank tanked heavily in the early trades on Monday nosediving to nearly 12-year low. (Image: Reuters)

Shares of the Kolkata-headquartered state-run UCO Bank plunged to nearly 12-year low on Monday after the crime detection agency the Central Bureau of Investigation booked Arun Kaul, former Chairman, UCO Bank with regard to the alleged involvement in a loan fraud amounting Rs 621 crore. According to a PTI report, the Central Bureau of Investigation has booked Arun Kau, former Chairman-cum-Managing Director, UCO Bank in connection to an alleged bank loan fraud of Rs 621 crore along with two chartered accountants of an infrastructure firm.

Following the jitters over the fraud, shares of UCO Bank tanked heavily in the early trades on Monday nosediving to nearly 12-year low. Shares of UCO Bank were the biggest losers among the ‘A’ group shares on BSE and the top laggards among the pack of 23 listed PSU banks on Monday. The stock of UCO Bank plummetted as much as 17.98% to a day’s bottom of Rs 18.25 on NSE while the stock crashed 14.32% to a day’s low of Rs 19.15 on Monday.

Shares of UCO Bank hit the lowest level since August 2006. Wayback on 24 August 2006, the stock of UCO Bank marked a day’s low of Rs 18.15 on NSE. An unusually high trading volume was witnessed in the shares of UCO Bank, as at 10.18 am, more than 53 lakh shares exchanged hands on both NSE and BSE with about 48 lakh on NSE alone.

The Central Bureau of Investigation has also booked Era Engineering Infra India Ltd, its CMD Hem Singh Bharana, two chartered accountants — Pankaj Jain and Vandna Sharda — and Pawan Bansal of Altius Finserve Pvt Ltd among others, PTI reported citing unidentified CBI officials. Arun Kaul, the former CMD of UCO Bank between 2010 and 2015, allegedly helped the accused company to obtain loans, PTI reported. The accused persons involved in the bank loan fraud case allegedly cheated UCO Bank to the tune of Rs 621 crore by diverting and siphoning the bank loans, PTI report added.

“Searches are being conducted at 10 places (8 in Delhi and 2 in Mumbai) including the office premises of the companies, chartered accountants and the residence of the aforesaid accused persons,” an unidentified CBI spokesperson was quoted in a PTI report.

Source: Financial Express