UCO Scrip Plunges To 12-Year Low At Rs. 18.25 On ex-CMD Connection In Rs. 621 Cr Loan Fraud

In early intra-day trade on Monday, the shares of state-run UCO Bank slumped sharply to a 12-year low as the news of the bank's former Chairman Arun Kaul alleged connection in Rs. 621 crore loan fraud case was uncovered. CBI has booked the former personnel of the bank in the alleged fraud along with two CAs of the infrastructure firm as per a PTI report.

A PTI report quoted a CBI spokesperson as saying, "Searches are being conducted at 10 places (8 in Delhi and 2 in Mumbai) including the office premises of the companies, chartered accountants and the residence of the aforesaid accused persons".

Shares of the bank were the biggest loser among 22 other listed PSU banks and dropped as much as 17.98% on the NSE and 14.32% on BSE to record day's low of Rs. 18.25 and Rs. 19.15 respectively.

The stock last hit such levels on August 24, 2006 when the share prices on the NSE hit a day's low of Rs. 18.15. An extra-ordinary trading volume in the stock was registered at around 10:18 am with 48 lakh shares traded on NSE alone and on total the volume increased to 53 lakh shares.

As at 11:14 am, the stock recuperated much of its losses and was seen quoting lower by 8.05% and 7.87% on the BSE and NSE respectively.

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