UCO Bank fell 7.83% to Rs 20.60 at 11:30 IST on BSE on reports CBI filed a case against former bank chairman Arun Kaul relating to an alleged Rs 621 crore bank loan fraud case.
Meanwhile, the S&P BSE Sensex was down 82.77 points, or 0.24% to 34,109.88.On the BSE, 6.47 lakh shares were traded in the counter so far compared with average daily volumes of 49,000 shares in the past two weeks. The stock had hit a high of Rs 20.80 so far during the day. The stock had hit a low of Rs 19.15 so far during the day, which is also a 52-week low for the counter. The stock hit a 52-week high of Rs 44.80 on 5 May 2017.
According to media reports, officials at UCO Bank had colluded with private infrastructure firm Era Engineering Infra, and investment banking firm Altius Finserve, to siphon two bank loans. After filing the case, the Central Bureau of Investigation (CBI) reportedly conducted searches at over 10 places in Delhi and Mumbai, including Kaul's residence, the premises of chartered accountants and the two firms. Kaul was the CMD of the bank between 2010 and 2015.
It is reportedly alleged that two loans worth Rs 200 crore and Rs 450 crore were given which were then diverted by these companies and not used for the purposes for which they were issued.
UCO Bank reported net loss of Rs 1016.43 crore in Q3 December 2017 as against net loss of Rs 437.09 crore in Q3 December 2016. Total income declined 23.48% to Rs 3721.93 crore in Q3 December 2017 over Q3 December 2016.
The Government of India held 84.23% stake in UCO Bank as on 31 March 2018 as per the shareholding pattern.
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