UCO Bank: Rs 7.6-bn provisioning done against fraud involving ex-chairman

UCO Bank stock falls 18% intra-day after CBI books ex-CMD others in Rs 621-crore loan fraud case

Shares of UCO Bank plunged almost 18% in morning trade on Monday after the Central Bureau of Investigation (CBI) has booked former chairman and managing director (CMD) of the bank, Arun Kaul, and others in connection with an alleged Rs621-crore loan fraud.

In response to a clarification regarding a news item titled, "CBI books ex-UCO Bank CMD in ₹621-crore cheating case", sought by the stock exchanges, the bank clarified that it filed a complaint with CBI on April 11 against Era Infra. It was further alleged that Kaul had at the relevant period facilitated the accused company in obtaining the said loan.

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

The offices of the companies, accountants and the residences of the accused are being searched, the CBI said. This, in turn, is supposed to have caused a loss of Rs 7.37 billion to the bank.

Another state-run lender PNB had in February disclosed that companies owned by two jewellers defrauded it by raising credit from overseas branches of other Indian banks, using illegal guarantees issued by staff at a Mumbai PNB branch over several years. It was found that the company did not utilize the amount for the goal for which it was disbursed and diverted the funds. The Rs 2 billion was issued for repayment of higher cost debt to Central Bank of India, Punjab National Bank (PNB), and IFCI.

Chartered accountant Pankaj Jain dishonestly and fraudulently did not mention the details of utilisation of term loan in the end-use certificate. And, the money was not utilised for the sanctioned objective, CBI has alleged. "The account was categorised as non-performing asset since July 1, 2013 onwards", the UCO Bank said in a regulatory filing on Monday.

Related:

Comments

Latest news

Devon Energy Corporation (DVN) Trading at $33.60 after Raise
The company's shares were given away at $33.35 per share worth to an income of some $234,951 on account of Henry Robert H. It improved, as 55 investors sold V shares while 605 reduced holdings. 94 funds opened positions while 188 raised stakes.

Miloš Forman, Amadeus and Man on the Moon Director, Dead at 86
He began studying film at the University of Prague in the early 1950s and started making films during the next decade. The Czech news agency CTK quoted her as saying Forman died suddenly on Friday after a short illness.

Kratos Defense & Security Solutions Inc (NASDAQ: KTOS)
Kratos Defense & Security Solutions, Inc. provides mission critical products, solutions, and services in the United States. S Squared Technology Llc increased Kratos Defense & Security Solu ( KTOS ) stake by 5.85% reported in 2017Q4 SEC filing.

Bill Cosby Confronts Main Accuser Andrea Constand At Trial
But in a 2005 deposition that Mesereau showed her, Constand said she had told her mother that she was affectionate toward him. She's getting a second chance to confront Cosby in court after his first trial ended with a hung jury .

Anticipated $0.26 EPS for Hudbay Minerals Inc
Charles Anderson decreased its stake in Facebook Inc (FB) by 33.33% based on its latest 2017Q4 regulatory filing with the SEC. The Company is engaged in the production of copper concentrate, consisting of copper, gold and silver, as well as zinc metal.

Other news