Union Bank Of India Shares Crash To 11-Year Low On CBI Complaint

Union Bank Of India Shares Crash To 11-Year Low On CBI Complaint

CBI enlisted the body of evidence against Totem Infrastructure and chiefs after a protestation from Union Bank.

Union Bank Of India Shares Crash To 11-Year Low On CBI Complaint
Union Bank’s stock touched its lowest price since March 2007

Association Bank of India (UBI) shares tumbled to an over 11-year low on Friday after government police enlisted a body of evidence against a privately owned business for purportedly deceiving eight moneylenders, including Union Bank, out of Rs. 1,394 crore ($214 million). The Central Bureau of Investigation (CBI) enlisted the body of evidence against Hyderabad-based Totem Infrastructure and executives after an objection from Union Bank, which the CBI said had been deceived out of about Rs. 314 crore.

Reuters couldn’t achieve Totem or its executives for input.

The case comes after a more-than $2 billion extortion in state-run Punjab National Bank, named the greatest bank misrepresentation in India’s history, activated investigation of all soured bank advances for any indication of bad behavior.

Totem Infrastructure, credits to which moved toward becoming non-performing in June 2012, “professedly redirected the assets by opening records outside the consortium (of eight banks) and through installments of wages by demonstrating overabundance consumption and enormous stocks”, the CBI said in an announcement late on Thursday.

The CBI said in a different proclamation that the organization concerned was Totem Infrastructure.

Association Bank did not react to demands for input from either the stock trade or Reuters.

By 12.49 pm, Union Bank shares were exchanging 8.3 percent down at Rs. 86.85. The stock fell as much as 9.13 percent to touch its most reduced cost since March 2007.

The CBI documented the case based on a grievance recorded by UBI which was swindled of Rs.303.84 crore by the firm.

“Advance was taken from a consortium of eight banks including UBI which was the lead bank. Add up to contribution exceptional for the consortium is Rs. 1,394.43 crore. This record progressed toward becoming NPA on June 30, 2012 after advance and intrigue installment default,” a CBI official said.

Totem Infrastructure was in the matter of street ventures, water works and building development.

(This Story Originating From NDTV)

Sanjay Bhagat

The author Sanjay Bhagat

Sanjay Bhagat is a news author in various news category and has worked on local newspapers.