Conducting forensic audit of 4 accounts, says UCO Bank

Aug 28 2014, 01:47 IST
Comments 0
SummaryErnst & Young has been appointed for the audit, a bank official told FE. He declined to give details of the four accounts.

State-run Uco Bank on Wednesday said a forensic audit is being conducted in the bank in respect of “four old accounts” which are all standard accounts in bank’s books.

Ernst & Young has been appointed for the audit, a bank official told FE. He declined to give details of the four accounts.

“We would like to clarify that forensic audit is being undertaken in the bank in respect of four old accounts which are all standard accounts in the bank’s books. However, the material impact, if any, will be known only after the completion of forensic audit," Uco Bank said in a BSE filing. The public sector bank’s statement came after media report said the Centre has ordered limited forensic audit into some non-performing accounts of the lender to find out any irregularity in sanction of loans.

Significantly, this is the fourth PSU bank where a forensic audit has been ordered after the Syndicate Bank scam. The probe into Syndicate Bank has raised broader concerns about weak oversight, corruption and politically directed lending at India's dominant state banks, which are weighed down by bad loans.

The finance ministry has also ordered a forensic audit of Dena Bank and Oriental Bank of Commerce after some of their branches allegedly misappropriated funds worth R437 crore, mobilised through deposits.

Ads by Google

More from BANKING & FINANCE

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...