Made 100% provision in Totem fraud: Union Bank

Union Bank of India, whose share prices plunged 8 per cent, today said it made 100 per cent provision against Totem Infrastructure Limited fraud case, so there is no material impact on the lender.

"The said company had availed credit facilities from consortium of 8 banks having aggregate exposure of Rs 1,394.43 crore and within which total exposure of our bank is Rs 313.84 crore as on January 31, 2018 (including unapplied interest of Rs 163.64 crore)," the bank said in a statement.

The account was classified as non-performing asset in the year 2012 and thereafter recovery action with consent of other consortium members was initiated in this account, it said.

100 per cent provision has been made in the account, it said, adding that there is no material impact of this article on the bank.

Meanwhile, shares of the Union Bank of India tanked over 8 per cent to hit a one-year low during the day amid concerns over losses incurred in a Rs 1,394-crore loan fraud case.

The stock dived 8.29 per cent to close at Rs 86.85 on BSE. Intra-day, it slumped 9.13 per cent to Rs 86.05 - its 52-week low.

At NSE, shares of the company tumbled 8.28 per cent to end at Rs 86.85.

The company's market valuation declined Rs 670.78 crore to Rs 7,432.22 crore.

The CBI has booked a Hyderabad-based construction and infrastructure company for allegedly defrauding a consortium of eight banks to the tune of over Rs 1,394 crore, officials said yesterday.

Totem Infrastructure, which worked as a sub-contractor for several major infrastructure companies, and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI FIR, registered on the basis of a complaint from Union Bank of India, one of the eight banks, they said.