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MUMBAI: The Enforcement Directorate (ED) has filed a first information report (FIR) against a few employees of Indusind Bank and some entities in connection with alleged irregularities in remittances for import transactions between 2011-2014, the private lender said in a statement on Wednesday.
The Chennai zonal office of ED, the bank said, has been investigating the matter and the agency has filed an FIR on July 9 against some of those entities and some employees of the bank. Most of these employees are no longer part of its workforce, it said.
“There is no credit exposure of the bank to these entities," Indusind Bank said.
The bank said it had filed suspicious transaction reports with regulatory authorities regarding many of these entities cited above. The bank had also filed complaints with the police authorities in 2015 against some of the unscrupulous entities, it added.
“Incidentally, the matter was subject of scrutiny by the Reserve Bank of India (RBl) in October 2015 and a penalty was levied on the bank which was intimated to the stock exchanges vide the bank’s letter dated 28 July 2016," the statement said.
In July 2016, the bank had said that on the basis of media reports relating to certain irregularities in advance remittance for import/export transactions, RBI conducted scrutiny. After considering the written and oral submissions of the bank following a show-cause notice, the regulator had imposed a penalty of ₹2 crore citing non-adherence to know your customer and anti-money laundering guidelines.
“The bank continues to extend full cooperation and assistance to the law enforcement agencies and is duty-bound to take appropriate action against any of the named employees if found to have deliberately facilitated/abetted the conduct of any illegitimate transaction," the statement said.
Indusind Bank shares on the BSE closed at ₹817.75, down 3.42% from its previous close.