UCO Bank shares down over 8 per cent as Finance Ministry orders forensic audit

Mumbai: Shares of UCO Bank ended with over 8per cent loss, eroding Rs 3,186.53 crore from its market value on August 27, as the government ordered limited forensic audit into some of its non-performing accounts. Stock of the public sector bank settled 8.24 per cent lower at Rs 90.25 on the BSE. During the day, it tumbled 8.89 per cent to Rs 89.60.

At the NSE, the stock slumped 7.93 per cent to close at Rs 90.50. Led by the sharp fall in the stock, the company's stock dropped Rs 3,186.53 crore to Rs 6,792.47 crore. The government has ordered limited forensic audit into some non-performing accounts of Kolkata-based UCO Bank to find out any irregularities in sanction of loans.

"We have ordered a limited forensic audit after complaints were filed with regards to some accounts. Those accounts have turned non-performing," official sources said yesterday. This is the fourth public sector bank where forensic audit is being conducted after alleged cash-for-loan scam came to light with the arrest of Syndicate Bank Chairman and Managing Director S K Jain earlier this month.

The gross non-performing assets (NPAs) of the state-run UCO bank stood at Rs 6,346.32 crore at the end of June. In percentage terms it was 4.31 per cent of the total advances. At the same time, net NPA of the bank stood at Rs 3,344.02 crore.