Bank guarantees of Rs 155.5 cr issued to NSIC against 100 per cent margin: UBI

New Delhi: United Bank of India (UBI) on Saturday said it has issued bank guarantees of Rs 155.5 crore to National Small Industries Corporation (NSIC) against 100 per cent margin.

The ED has registered a money laundering case in connection with an alleged fraud of over Rs 173 crore in at UBI in 2016, involving the NSIC in West Bengal.

"We would like to clarify that the Bank had issued Bank Guarantees (BG) amounting to Rs 155.50 crore to NSIC against 100 per cent margin," UBI said in a filing to BSE.

NSIC sought confirmation for further BGs amounting to Rs 18 crore which, as per the bank, are non-existent in its records, UBI said.

It added that the bank guarantees amounting to Rs 155.5 crore were periodically and prematurely invoked by NSIC and the amount was "duly credited to their account".

The matter is under investigation by CID, West Bengal since July 2016, it added.