On Thursday, PTI reported CBI (Central Bureau of Investigation) registering a case against Hyderabad-based Totem Infrastructure and its promoters for allegedly defrauding Union Bank of India to the tune of Rs 313 crores.
The total fraud amount is estimated to be Rs 1,394 crores lent by eight banks including the Union Bank of India.
Following this news, the stocks of the Mumbai-headquartered, state-owned bank crashed as much as 9.13% to Rs 86.05 on NSE today. It was last found to be at this level in March 2007.
The stock declined 39 percent so far this year and a loss of 41 percent in the past 52 weeks.
It is alleged that the loans taken from the banks for various projects were diverted for purposes other than they were meant for and to personal accounts of the promoters, as per PTI reports.