UCO Bank shares jumped 14% after CBI booked ex-chairman in fraud case

The share prices of UCO Bank plunged 14 per cent, to Rs 19.15 on the Bombay Stock Exchange (BSE) in today’s early morning trade after there were reports stating that the Central Bureau of Investigation (CBI) has booked former chairman-cum-managing director Arun Kaul and several others of the UCO Bank in connection with an alleged Rs 6.21 billion loan fraud.
The stock prices had been trading at its lowest level since September 7, 2006.In fact, it touched an all-time low of Rs 14.30 on July 19, 2006 on the BSE in intra-day trade.
Apart from Kaul, the Central Bureau of Investigation (CBI) booked Era Engineering Infra India Ltd. (EEIL), its CMD Hem Singh Bharana, two chartered accountants - Pankaj Jain and Vandna Sharda - and Pawan Bansal of Altius Finserve Pvt. Ltd. among others.
There were allegations that the accused persons were involved in a criminal conspiracy defrauded the UCO Bank with an involvement of about Rs 6.21 billion by diversion and siphoning of the bank loans, revealed the news sources.
UCO Bank was trading 8 per cent lower at Rs 20.60 against 0.19 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.90 million shares changed hands on the BSE and NSE so far.