| Log in
Photo Credit: Shah Junaid/VCCircle

Union Bank shares slump to 11-year low on fraud complaint

23 March, 2018

Union Bank of India Ltd (UNBK.NS) shares fell to a more-than 11-year low on Friday after federal police registered a case against a private company for allegedly cheating eight lenders, including Union Bank, out of 13.94 billion rupees ($214 million).

The Central Bureau of Investigation (CBI) registered the case against Hyderabad-based Totem Infrastructure and directors after a complaint from Union Bank, which the CBI said had been cheated out of about 3.14 billion rupees.

Reuters could not reach Totem or its directors for comment.

The case comes after a more-than $2 billion fraud in state-run Punjab National Bank (PNBK.NS), dubbed the biggest bank fraud in India’s history, triggered scrutiny of all soured bank loans for any sign of wrongdoing.

Totem Infrastructure, loans to which became non-performing in June 2012, “allegedly diverted the funds by opening accounts outside the consortium (of eight banks) and through payments of wages by showing excess expenditure and huge stocks”, the CBI said in a statement late on Thursday.

The CBI said in a separate statement that the company concerned was Totem Infrastructure.

Union Bank did not respond to requests for comment from either the stock exchange or Reuters.

By 0719 GMT, Union Bank shares were trading 8.3 percent down at 86.85 rupees. The stock fell as much as 9.13 percent to touch its lowest price since March 2007.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Andhra Bank shares slump to 15-year low on fraud probe

Andhra Bank shares slump to 15-year low on fraud probe

Reuters 2 months ago
Shares in the state-run Andhra Bank, already hurt by an industry-wide spillover...
Pen maker Rotomac Global, bank officials accused of $454 mn loan fraud

Pen maker Rotomac Global, bank officials accused of $454 mn loan fraud

Reuters 2 months ago
The Central Bureau of Investigation (CBI) said on Monday it has registered a...
State-run IDBI Bank discloses $119 mn fraud

State-run IDBI Bank discloses $119 mn fraud

Reuters 4 weeks ago
IDBI Bank Ltd said on Tuesday fraudulent loans of 7.72 billion rupees ($118.8...
No Comments

Union Bank shares slump to 11-year low on fraud complaint

Powered by WordPress.com VIP