Union Bank of India shares crack over 9% on loan fraud worries

Shares of Union Bank of India today tumbled over 9 per cent to hit a one-year low amid concerns over losses incurred in a Rs 1,394-crore loan fraud case.

The stock plunged 9.13 per cent to Rs 86.05 to hit its 52-week low on BSE.

On NSE, shares of the company dove 9.13 per cent to hit its one-year low of Rs 86.05.

The CBI has booked a Hyderabad-based construction and infrastructure company for allegedly defrauding a consortium of eight banks to the tune of over Rs 1,394 crore, officials said yesterday.

Totem Infrastructure, which worked as a sub-contractor for several major infrastructure companies, and its promoters Tottempudi Salalith and Tottempudi Kavita were named in a CBI FIR, registered on the basis of a complaint from Union Bank of India, one of the eight banks, they said.

The bank alleged in the complaint that it suffered a loss of Rs 313.84 crore as the loans given to the company had become NPA in June, 2012.

They said the total dues towards the consortium stand at Rs 1,394.43 crore. The BSE had yesterday sought clarification from Union Bank of India with respect to news that CBI filed Rs 1,394 crore bank fraud case on UBI complaint.moneycontrol

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