Union Bank of India Slips 8% Today, Hits 11-Year Low Amid Rs 1,394 crore Loan Fraud Case
As per reports, CBI has booked a Hyderabad-based construction and infrastructure company, Totem Infrastructure for allegedly defrauding a consortium of eight banks to the tune of over Rs 1,394 crore
23 March, Mumbai: At the Bombay Stock Exchange today, Union Bank of India (UBI) has slipped 8.39 percent to Rs 86.75.As per reports, the shares have hit an 11-year old low (since March 2007) amid concerns over losses incurred in a Rs 1,394-crore loan fraud case.
According to PTI reports, the CBI has booked a Hyderabad-based construction and infrastructure company, Totem Infrastructure for allegedly defrauding a consortium of eight banks to the tune of over ₹ 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.
Reportedly, over the past two months, the CBI has filed at least seven FIRs related to loan defaults and frauds. The current negative news will further hurt the bank, which is already reeling under asset quality stress. It is expected that with this additional stress, it will affect the earnings for the coming quarters of the bank.
(The above story first appeared on LatestLY on Mar 23, 2018 05:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).