Union Bank of India joins the fraud victim list

The list of mega bank fraud cases in India is increasing day by day. Major PSU banks are coming forward with astounding number of frauds. The latest one came from Union Bank of India, which is worth Rs. 1,400 crores.

Just after investigating agency filed case against Kanishk Gold for a frauds of Rs. 824 crores, Union Bank came up with a fraud of Rs. 1,400 crore by Totem Infrastructure, a Hyderabad-based company. The company is a EPC contractor and who took loans from a consortium of banks including Union Bank of India .

The CBI registered case against Totem Infrastructure and its promoters alleging that the company had diverted the amount to accounts outside the consortium banks showing payment of wages and excess expenses. The company took loans of Rs. 1,393 crore which became NPL in June 2012.

After the PNB fraud case was unearthed all major PSU banks were directed to identify the possible frauds in their loan books. This has led to piling up of cases with RBI with many new fraud cases being reported.

The Union Bank opened on bourses on Friday at Rs. 89 per share and closed today at  Rs. 86.8 down by 8.34 per cent from previous close.