Shares of Union Bank of India fell more than 8% on Friday after the bank reported fraudulent transactions to the Central Bureau of Investigation (CBI).
The shares declined 8.3% to ₹86.85 on the BSE, its lowest price in 11 years.
On Thursday, the CBI registered a case based on a complaint by the bank against Totem Infrastructure Ltd. and its directors for allegedly cheating the bank of ₹313.84 crore. The company owed ₹1,394.43 crore to a consortium of 8 banks, led by Union Bank, since June 2012. On Friday, CBI arrested Totem’s directors Tottempudi Salalith and Tottempudi Kavita.
