Reports indicate that after Punjab National Bank (PNB) and State Bank of India (SBI), now Union Bank of India has been hit by a fraud. In an interview to CNBC-TV18, Rajkiran Rai G, Managing Director & CEO of Union Bank of India spoke about the latest happenings in his company and sector.
Totem Infra has become non-performing asset (NPA) in March 2012 and the exposure at that point of time was around Rs 700 crore. So today when we filed the case, with the interest rate it has come to nearly Rs 1,400 crore, he said.
This was declared as fraud in 2016 itself and after that the process of filing complaint was on. The complaint is registered recently, he added.
There are recoveries also coming, not in big numbers but we have received around Rs 10 crore of recoveries in last one to one and a half years, said Rajkiran Rai.
We are scrutinizing all accounts and have formed committee at different levels. Wherever we have doubts, we have given those accounts for forensic audit which will take a month. Once it comes, the committee will look at it, he further mentioned.
We are very close to resolution on the National Company Law Tribunal (NCLT) cases. That will mostly happen in a few months, Rai said.