The RBI on Tuesday said it has imposed penalties on seven lenders, including Allahabad Bank, Bank of Maharashtra, HDFC and Kotak Mahindra Bank, for violation of various banking norms.
New Delhi:
A penalty of Rs 1 crore has been imposed on Andhra Bank for similar violations.
The Reserve Bank further said Rs 20 lakh fine each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance with various directions on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.
Penalties are based on deficiencies in regulatory compliance and “is not intended to pronounce” upon the validity of any transaction or agreement entered into by the banks with their customers, the central bank added.
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Bids worth Rs 8,000 cr received for Axis Bank part stake sale through SUUTI
The Centre’s share sale in Axis Bank held through SUUTI witnessed a blockbuster start with institutional investors putting in bids worth over Rs 8,000 cr by lapping up 2.56 times the shares reserved for them on the first day of the offer for sale (OFS). Institutional investors bid for over 11.69 cr shares, 2.56 times the 4.56 cr shares on offer for them, as per NSE data. The issue will open for retail investors on Wednesday. At the floor price of Rs 689.52 a share fixed for the share sale, the bids by these investors are worth Rs 8,062 cr. The Centre through the Specified Undertaking of the United Trust of India (SUUTI) is selling up to 5.07 cr shares in Axis Bank through the two-day OFS. It also has a green-shoe option to retain over-subscription of 2.63 cr shares in case of over subscription. If the share sale goes through with over-subscription, the government would sell 3 per cent stake in Axis Bank held through SUUTI. As on Dec 30, 2018, SUUTI held 9.56 per cent in Axis Bank. The proceeds from the stake sale would help the government move towards the Rs 80,000-cr disinvestment target set for the current financial year.
A penalty of Rs 1.5 crore has been imposed each on Allahabad Bank, Bank of Maharashtra and Indian Overseas Bank for non-compliance with various directions issued by RBI on monitoring of end use of funds, exchange of information with other banks, classification and reporting of frauds, and on restructuring of accounts.
A penalty of Rs 1 crore has been imposed on Andhra Bank for similar violations.
The Reserve Bank further said Rs 20 lakh fine each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance with various directions on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.
Penalties are based on deficiencies in regulatory compliance and “is not intended to pronounce” upon the validity of any transaction or agreement entered into by the banks with their customers, the central bank added.
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Bids worth Rs 8,000 cr received for Axis Bank part stake sale through SUUTI
The Centre’s share sale in Axis Bank held through SUUTI witnessed a blockbuster start with institutional investors putting in bids worth over Rs 8,000 cr by lapping up 2.56 times the shares reserved for them on the first day of the offer for sale (OFS). Institutional investors bid for over 11.69 cr shares, 2.56 times the 4.56 cr shares on offer for them, as per NSE data. The issue will open for retail investors on Wednesday. At the floor price of Rs 689.52 a share fixed for the share sale, the bids by these investors are worth Rs 8,062 cr. The Centre through the Specified Undertaking of the United Trust of India (SUUTI) is selling up to 5.07 cr shares in Axis Bank through the two-day OFS. It also has a green-shoe option to retain over-subscription of 2.63 cr shares in case of over subscription. If the share sale goes through with over-subscription, the government would sell 3 per cent stake in Axis Bank held through SUUTI. As on Dec 30, 2018, SUUTI held 9.56 per cent in Axis Bank. The proceeds from the stake sale would help the government move towards the Rs 80,000-cr disinvestment target set for the current financial year.