Shares of Union Bank of India today declined more than 3 per cent in morning trade after the lender said it has an exposure of Rs 1,900 crore to the PNB fraud case.


The stock fell 3 per cent to touch an intra-day low of Rs 116.50, which was also its 52-week low level, on BSE. The stock slumped to its 52-week low level of Rs 116.50 on NSE as well, down 3.07 per cent over its previous close.


"We wish to inform you that the bank through our foreign branches has been taking exposure with Punjab National Bank (PNB) as counterparty under various Letters of Undertakings issued through authenticated SWIFT message," Union Bank of India said in late night filing to stock exchanges.


State-owned Punjab National Bank on February 14 said it has detected a Rs 11,400 crore scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders. While PNB did not name the other lenders, besides Union Bank of India, Allahabad Bank and Axis Bank are said to have offered credit based on letters of undertaking (LOUs) issued by PNB.


Shares of Allahabad Bank also fell to the 52-week low level of Rs 53.10, and Axis Bank fell 1.23 per cent to an intra-day low of Rs 537.05 on BSE today. Meanwhile, the BSE Bankex was also trading in the negative and fell to a low of 28598.89 points, down 133.47 points in morning trade today.