Union Bank surges 7.5%

Union Bank of India surged over 7.5% to hit an intraday high at Rs.43.55 on the back of an almost 3x surge in volumes. Its 52-week high is at Rs.54.80.

The bank, which is the 2nd largest credit provider to KSK Mahanadi Power, has put up for auction its outstanding loan of Rs.2,077 crore. The bank has put up the loan for sale because there has been no progress in the recovery through the National Company Law Tribunal (NCLT) for many months.

UBI’s reserve price is at Rs.919 to recover 44% of its o/s balance. 31st Aug is the last date for buyers to express their interest after which it will be put on electronic auction from 1st Sept.

KSK Mahanadi is a 3600 MW power plant, going through a long drawn process of insolvency. Other lenders like SBI and BoB have already sold off their debt.

The total debt is said to be around Rs.29,501 crore.