Money & Bankin

RBI imposes ₹1 crore penalty on Karnataka Bank

Our Burea Mangaluru | Updated on July 08, 2021

Penalty for contravention of RBI directions while sanctioning credit facilities to IL&FS and its group companies

The Reserve Bank of India (RBI) has imposed a penalty of ₹1 crore on Karnataka Bank, the lender informed the stock exchanges.

In an intimation to the stock exchanges on Wednesday, the bank said: “Pursuant to Regulation 30 of the SEBI (LODR), Regulations, 2015, we wish to inform that Reserve Bank of India (RBI), vide email dated July 7, 2021, has imposed a monetary penalty of ₹1 crore on the bank for contravention of the directions contained in RBI circular on ‘Lending to Non-Banking Financial Companies (NBFCs) and ‘Bank Finance to Non-Banking Financial Companies (NBFCs)’ while sanctioning credit facilities to M/s Infrastructure Leasing and Financial Services Ltd (IL&FS) and its group companies.”

“We further inform that as Bank had already made full loan provision, there is no other financial impact other than the penalty amount,” it said in the intimation to the stock exchanges.

Published on July 08, 2021

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