Indian federal police file case against former UCO Bank chairman

Elias Hubbard
April 16, 2018

CBI, according to Reuters, said in a statement that Arun Kaul, the bank's chairman between 2010-2015, had helped clear the loan.

Shares of public-sector lender UCO Bank on Monday plunged to nearly 12-year low on the stock exchanges following the ongoing probe into an alleged Rs 737 crore loan fraud case. The bank had reported losses for nine straight quarters through December 31 as it had to make provisions for soured debt that remains higher than the banking system's average.

Shares of UCO Bank plunged almost 18% in morning trade on Monday after the Central Bureau of Investigation (CBI) has booked former chairman and managing director (CMD) of the bank, Arun Kaul, and others in connection with an alleged Rs621-crore loan fraud.

Shares opened at ₹20, then lost further ground and fell to their 52-week low of ₹19.15, down 14.31 % over its previous closing price.

The stock was trading at its lowest level since September 7, 2006.

Ltd. among others. There were allegations that the accused persons were involved in a criminal conspiracy defrauded the UCO Bank with an involvement of about Rs 6.21 billion by diversion and siphoning of the bank loans, revealed the news sources.

In the case of the Rs 4.5 billion loan, too, the funds were utilised for purposes other than stipulated in the sanction and the end-use certificates given by the chartered account were intentionally ambiguous and against the fact, it alleged.

Other reports by Click Lancashire

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