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

Besides Kaul, it has booked EEIL, the latter's chairman, Hem Singh Bharana, and two chartered accountants (CAs), Pankaj Jain and Vandna Sharda

Government-owned UCO Bank told the stock exchanges on Monday it had already provided Rs 7.57 billion on its balance sheet as provisioning against a bad loan account involving its former chairman, Arun Kaul.

During the weekend, the Central Bureau of Investigation (CBI) booked Kaul, the lender’s former chairman and managing director (CMD), and some others in connection with an alleged Rs 6.21 billion loan fraud. This, in turn, is supposed to have caused a loss of Rs 7.37 billion to the bank.

UCO Bank says the account in question was classified as non-performing since July 1, 2013.

It had registered