Union Bank gets defrauded

Union Bank is the top loser on the BSE since the morning. The stock price slumped almost 9% to Rs.86.50, which is a new 52-week low.

The worms coming out of the can just do not seem to stop. The CBI has registered a Rs1,394.43 crore bank fraud case against Hyderabad-based Totem Infrastructure. This company took a loan from a consortium of eight banks, including Union Bank, wherein the total outstanding dues stand at Rs1,394.43 crore. This account became NPA (non-performing asset) on 30 June 2012.

This fraud comes to light a day or two after CBI filed a case against Kanishk Gold where SBI was defrauded to the tune of Rs.824 crore.