UCO Bank tanks 18 pc after CBI books ex-CMD in Rs 621-cr fraud case

PTI

Business, Market

Shares of UCO Bank plunged nearly 18 per cent in morning trade after the CBI booked Arun Kaul.

Shares of UCO Bank plunged nearly 18 per cent in morning trade.

New Delhi: Shares of UCO Bank plunged nearly 18 per cent in morning trade after the CBI booked Arun Kaul, former chairman-cum-managing director of the lender, and others in connection with an alleged Rs 621-crore loan fraud.

Shares of the company today opened at Rs 20, then lost further ground and fell to their 52-week low of Rs 19.15, down 14.31 per cent over its previous closing price. On NSE, the stock opened at Rs 20.60, then fell to its 52-week low of Rs 18.25, down 17.97 per cent over its last close.

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 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.

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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