State-owned UCO Bank slumped to nearly 12-year low today after Central Bureau of Investigation (CBI) filed a case against former bank chairman Arun Kaul relating to an alleged Rs 621-crore bank loan fraud case on Saturday.
The stock fell nearly 14% to 19.15 level on BSE. On the NSE, the stock fell 18% intra day to 18.25 level.
At 11:51 am, the stock was trading 7.83% lower at 20.60 level on BSE. It was the top loser on BSE. Police said officials at the 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 CBI conducted searches at over 10 places in Delhi and Mumbai, including Kaul’s residence, the premises of CAs and the two firms.
Kaul was the CMD of the bank between 2010 and 2015.
In a complaint filed by the bank, it is 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.
The stock is trading below 50-day moving average of 23.38 and 200-day moving average of 28.99 level.
The stock hit its 52-week high of 44.80 on May 5, 2017 and 52-week low of 19.15 on April 16, 2018.businesstoday