NEW DELHI: Shares of UCO Bank and Allahabad Bank crashed up to 11 per cent after the two state-owned lenders came out with their exposure to the Rs 11,400 crore PNB fraud.
Shares of UCO Bank fell 11.3 per cent to Rs 25.20 after the state-owned bank said it has exposure of $411.82 million (about Rs 2,636 crore) in the banking scam allegedly premeditated by billionaire jeweller Nirav Modi and his associates. The bank's loss widened to Rs 1,016.4 crore in the December quarter from Rs 437 crore loss in the year-ago period. This was the ninth consecutive quarter of losses for the lender.
Allahabad Bank fell 6.75 per cent to Rs 51.05 after sources pegged its exposure at around Rs 2,000 crore.
"We have an exposure of around Rs 2,000 crore in the fraud detected by PNB some days back," a source in Allahabad Bank told PTI.
The PNB fraud pertains to issuance of fake Letters of Understanding (LoUs) by PNB employees to Nirav Modi companies. It is believed that the employees in question helped the entities raise buyers' credit from international branches of other Indian lenders.
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