UCO Bank shares sink nearly 9% as FinMin orders forensic audit

Govt has ordered limited forensic audit into some non-performing accounts of the Kolkata-based bank to find out any irregularities in sanction of loans

Shares of UCO Bank plunged nearly 9% today as the government ordered limited forensic audit into some of its non-performing accounts.

Following this, the bank's scrip tumbled 8.74% to Rs 89.75 on the BSE.

On the NSE, it slumped 8.69% to Rs 89.75.

The government has ordered limited forensic audit into some non-performing accounts of Kolkata-based UCO Bank to find out any irregularities in sanction of loans.

"We have ordered a limited forensic audit after complaints were filed with regards to some accounts. Those accounts have turned non-performing," official sources said yesterday.

This is the fourth public sector bank where forensic audit is being conducted after alleged cash-for-loan scam came to light with the arrest of Syndicate Bank Chairman and Managing Director S K Jain earlier this month.

The gross non-performing assets (NPAs) of the state-run UCO bank stood at Rs 6,346.32 crore at the end of June. In percentage terms it was 4.31% of the total advances. At the same time, net NPA of the bank stood at Rs 3,344.02 crore.