Union Bank hits 52-week low amid report of Rs 1,394 crore fraud
NEW DELHI: Shares of the state-run lender Union Bank of India (UBI) tanked over 8 per cent to hit a 52-week low of Rs 86.50 in the morning trade on Friday.
The stock reacted negatively after media reports said the bank has registered a complaint with the Central Bureau of Investigation (CBI) against Hyderabad-based Totem Infrastructure and its promoters in a case of fraud involving sum of Rs 1,394 crore.
This apart, the bank said its asset quality has deteriorated sharply in the fourth quarter and the bank may be in for further stress in terms of profitability if it fails to contain its mounting non-performing assets. The lender’s NPA grew 18 per cent to Rs 48,336 crore till February compared with Rs 40,988 crore at the end of December 2017, said an ET report.
At 10:46 am, shares of the company were trading at Rs 86.95 apiece, down 8.18 per cent on BSE.
The stock reacted negatively after media reports said the bank has registered a complaint with the Central Bureau of Investigation (CBI) against Hyderabad-based Totem Infrastructure and its promoters in a case of fraud involving sum of Rs 1,394 crore.
This apart, the bank said its asset quality has deteriorated sharply in the fourth quarter and the bank may be in for further stress in terms of profitability if it fails to contain its mounting non-performing assets. The lender’s NPA grew 18 per cent to Rs 48,336 crore till February compared with Rs 40,988 crore at the end of December 2017, said an ET report.
At 10:46 am, shares of the company were trading at Rs 86.95 apiece, down 8.18 per cent on BSE.