UCO Bank down 6 percent as CBI books ex-CMD in a case of Rs 621-crore fraud

The bank's market capitalisation got eroded by Rs 1,256.95 crore to Rs 3,901.79 crore.

Published: 16th April 2018 07:12 PM  |   Last Updated: 16th April 2018 07:12 PM   |  A+A-

UCO Bank's market capitalisation got eroded by Rs 1,256.95 crore to Rs 3,901.79 crore. (File | Reuters)

By PTI

NEW DELHI: UCO Bank shares fell over 6 per cent today as CBI booked its former chairman-cum-managing director Arun Kaul and others allegedly for a Rs 621-crore loan fraud.

The bank's market capitalisation got eroded by Rs 1,256.95 crore to Rs 3,901.79 crore.

During the day the stock had plunged to a low of Rs 19.15, its 52-week low. At the end of trading the stock was quoted at Rs 20.90, down 6.49 per cent.

On NSE, it had fallen to 52-week low, but recovered some ground and settled at Rs 20.85, down 6.29 per cent over its previous closing price.

On April 14, the CBI booked Kaul and others in connection with an alleged Rs 621-crore loan fraud which has caused a loss of over Rs 737 crore to the bank.

Besides Kaul, the CBI booked Era Engineering Infra India Ltd.

(EEIL), its CMD Hem Singh Bharana, two chartered accountants -- Pankaj Jain and Vandna Sharda -- and Pawan Bansal of Altius Finserve Pvt.Ltd. among others, they said.

It is alleged that the accused in pursuance of a criminal conspiracy defrauded the UCO Bank by diversion and siphoning of the bank loans. Kaul, who was the CMD of a Kolkata-based bank between 2010 and 2015, allegedly facilitated the accused company in obtaining the loan.

 

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