In a shocking turn of events, UCO Bank reported that it credited an erroneous amount of Rs 820 crore to certain account holders via the Immediate Payment Service (IMPS). The bank has since taken measures to recover the mistakenly transferred funds, managing to retrieve Rs 649 crore, which accounts for 79 per cent of the total amount.
It remains unclear whether the technical glitch resulting in the mistaken transfer was due to human error or a potential hacking attempt. The bank has emphasized that the IMPS platform is operated the National Payments Corporation of India (NPCI), and is meant to facilitate real-time interbank electronic funds transfers without intervention.
UCO Bank has assured the public that it has taken necessary actions to recover the remaining balance of Rs 171 crore, and has also reported the matter to law enforcement agencies for further action.
The incident, which occurred between November 10-13, prompted the bank to observe that certain transactions initiated account holders at other banks led to credits in UCO Bank accounts without the actual receipt of funds. This revelation has caused UCO Bank’s shares to decline 1.53 per cent, closing at Rs 39.22 per unit on the Bombay Stock Exchange (BSE).
Despite the unfortunate situation, UCO Bank also reported its financial performance for the quarter ended September 2023. The bank’s net profit declined 20 per cent to Rs 402 crore as compared to Rs 505 crore in the corresponding quarter of the previous year. However, its total income during the July-September period saw an increase to Rs 5,866 crore from Rs 4,965 crore in the same period the previous year. Additionally, interest income for Q2 FY24 rose to Rs 5,219 crore from Rs 4,185 crore.