Issued bank guarantees of Rs 1.55 bn to NSIC against 100% margin: UBI

NSIC sought confirmation for further BGs amounting to Rs 180 million which, according to UBI, are non-existent in its records

United Bank of India (UBI) on Saturday said it has issued bank guarantees of Rs 1.55 billion to National Small Industries Corporation (NSIC) against 100 per cent margin.

The ED has registered a money laundering case in connection with an alleged fraud of over Rs 1.73 billion at UBI in 2016, involving the NSIC in West Bengal.

"We would like to clarify that the Bank had issued Bank Guarantees (BG) amounting to Rs 1.55 billion to NSIC against 100 per cent margin," UBI said in a filing to BSE.

NSIC sought confirmation for further BGs amounting to Rs 180 million which, according to the bank, are non-existent in its records, UBI said.

It added that the bank guarantees amounting to Rs 1.55 billion were periodically and prematurely invoked by NSIC and the amount was "duly credited to their account".

The matter is under investigation by CID, West Bengal since July 2016, it added.