UCO Bank and Allahabad Bank fell by 11% on PNB disclosure
On 19 February, it was observed that the shares of UCO Bank along with Allahabad Bank fell by 11 per cent approximately, after PNB got exposed for its scam. Both the state-owned banks fell down due to the exposure of Rs 11,400 crore PNB fraud.
On Monday, the Shares of UCO Bank fell 11.3 per cent to Rs 25.20. while the shares of Allahabad Bank fell 6.75 per cent to Rs 51.05. This was observed when the state-owned bank said it has exposure of about Rs 2,636 crore in the banking scam that recently took place. It was allegedly planned by famous billionaire jeweller Nirav Modi along with his associates. In the month of December, the loss of bank extended to Rs 1,016.4 crore, which was earlier Rs 437 crore in the year-ago period. Consecutively, from nine quarter the state-owned lender were facing the loss.
It was reported that the Allahabad Bank fell 6.75 per cent to Rs 51.05. As per the report, Allahabad Bank stated that they have an exposure of around Rs 2,000 crore in the fraud that was detected by PNB recently.
All the matter of this story is related to the issuance of fake Letters of Understanding by some of the PNB employees. It was issued to Nirav Modi companies. Some of the employees of PNB were caught held of helping the entities raise buyers’ credit from international branches of other banks.