Indian Bank informed the exchanges that Reserve Bank Of India, vide its letters dated November 18, 2019 (letters received by the Bank on 19.11.2019) has imposed a monetary penalty aggregating to Rs1.75cr (Rupees one crore seventy five lakhs only) on the Bank for non-compliance with the directions issued by RBI in:
opening of SB accounts of a co-operative society and non-adherence with directions on KYC / AML norms
window dressing of the Balance Sheet as on March 31, 2018 by loan disbursal amounting to Rs508.28cr
delayed reporting of the frauds
This penalty has been imposed in exercise of powers vested in RBI under Section 47(A) (1) (c) read with Section 46(4)(i) and 51(1) of the Banking Regulation Act, 1949.
The Bank mentioned that the said penalty will not have any material impact on the Bank.
Stock view:
Indian Bank is currently trading at Rs122.85 down by Rs1.05 or 0.85% from its previous closing of Rs123.90 on the BSE.
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