After touching a 52-week-low of Rs18.25, UCO Bank shares are trading today at 21.15, up by 1.68%. The stock fell over 6 per cent on April 16th, 2018, as CBI booked its former chairman-cum-managing director Arun Kaul for a Rs 621-crore loan fraud. The bank’s market capitalisation got eroded by Rs 1,256.95 crore to Rs 3,901.79 crore.
On April 14, the CBI booked Kaul and others in connection with an alleged Rs 621-crore loan fraud which has caused a loss of over Rs 737 crore to the bank.
Besides Kaul, the CBI booked Era Engineering Infra India Ltd. (EEIL), its CMD Hem Singh Bharana, two chartered accountants — Pankaj Jain and Vandna Sharda — and Pawan Bansal of Altius Finserve Pvt. Ltd. among others, they said.
It is alleged that the accused in pursuance of a criminal conspiracy defrauded the UCO Bank by diversion and siphoning of the bank loans.
Kaul, who was the CMD of a Kolkata-based bank between 2010 and 2015, allegedly facilitated the accused company in obtaining the loan.
With inputs from PTI