UCO Bank Recovers 79% of Rs 820 Crore Erroneously Credited to Account Holders
New Delhi, UCO Bank has successfully recovered Rs 649 crore, or 79% of the amount, that was erroneously credited to some account holders via Immediate Payment Service (IMPS). The state-owned bank has initiated the process to reverse the remaining balance of Rs 171 crore.
The bank took proactive steps to block the recipients’ accounts, leading to the recovery of the majority of the funds. However, UCO Bank has not yet clarified whether the technical glitch was due to human error or a hacking attempt.
The IMPS platform, operated by the National Payments Corporation of India (NPCI), facilitates real-time interbank electronic funds transfers. The bank has reported the matter to law enforcement agencies for further action.
During the period from November 10-13, UCO Bank noticed a technical issue in IMPS, resulting in the crediting of accounts without the actual receipt of money from other banks.
In light of this incident, the bank’s shares closed at Rs 39.22 per unit, marking a 1.53% decrease on the BSE. Additionally, UCO Bank reported a 20% decline in net profit to Rs 402 crore for the quarter ended September 2023, compared to Rs 505 crore in the corresponding quarter the previous year.
Despite the decline in net profit, the bank’s total income for the July-September period rose to Rs 5,866 crore from Rs 4,965 crore in the previous year. Interest income during Q2 FY24 also saw an increase to Rs 5,219 crore from Rs 4,185 crore. This recovery efforts by UCO Bank demonstrate their commitment to rectifying the situation and ensuring the integrity of their operations.
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