UCO Bank Shares Crash 14% After CBI Books Ex-Chief In Loan Fraud Case

MUMBAI:Shares of UCO bank slumped 14 per cent today after Reuters reported that the Central Bureau of Investigation has filed a case against a former chairman of the state-run bank and several business executives alleging criminal conspiracy that caused a loss of Rs.621 crore. Bombay Stock Exchange or BSE has sought clarification from UCO Bank on this matter, According to Reuters, CBI said officials at the bank had colluded with private infrastructure firm Era Engineering Infra, and investment banking firm Altius Finserve Pvt to siphon bank loans.
UCO bank shares traded in the range of Rs. 20.80 to Rs. 19.15 today on the BSE. At 11.41 am, shares of UCO Bank were down 8 per cent to Rs. 20.60.
CBI, according to Reuters, said in a statement that Arun Kaul, the bank’s chairman between 2010-2015, had helped clear the loan.

In the UCO Bank case, Reuters reported that CBI charged Kaul and several officials and accountants at the two companies with criminal conspiracy with an intention to defraud the bank of about Rs. 621 crore by diverting and siphoning loans.