UCO taking steps to recover money in Rs 19 crore fraud

The UCO Bank on Wednesday said that it is taking steps to recover the amount in a Rs 19 crore fraud detected by it at one of its branches in Bengaluru through Sarfesi Act and has made provisions against the accounts concerned.

During the investigation of complaints received by it, the bank observed certain irregularities in sanctioning and disbursement of some home or property loans during the period from August 26, 2013 to June 1, 2016 at its Jayanagar branch in Bengaluru.

Subsequently, it had lodged a complaint with the Central Bureau of Investigation in March last year and also reported to the Reserve Bank of India.

"Appropriate departmental action has been initiated and punishment awarded to the erring officials. Bank is taking steps to recover the amounts through Sarfesi Act," it said in a regulatory filing.

The lender also said it is holding the provision against these accounts as IRAC norms, it added.