UBI faces probe on audit, corp governance

The crisis-hit United Bank of India, which has run into losses amid suspiciously high bad loans, now faces fresh probes for possible lapses related to auditing and corporate governance norms.

Capital market regulator Sebi has received complaints about possible violations to its corporate governance norms at the bank, while it may also look into potential lapses with regard to its other regulations including those about related party transactions and insider trading, sources said.

Besides, the Institute of Chartered Accountants of India is believed to be looking at the role of the bank’s auditors, sources said, although there was no official word on these fresh probes.

UBI posted net loss of Rs 1,238 crore for the three months ended December 2013. The bank’s gross Non Performing Assets (NPAs) touched Rs 8,546 crore during the same period, from Rs 2,964 croreas on March 31, 2013.

There are concerns about the bank’s books amid fears that rising bad loans might have not been properly reported for quite sometime.