RBI imposes monetary penalty of ₹30 lakh on Karur Vysya Bank
2 min read . Updated: 24 Mar 2023, 07:08 PM IST
PremiumA Select Scope Inspection (SSI) of Karur Vysya Bank was conducted by central bank during the period from 21 February, 2022 to 4 March, 2022.
The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of ₹30 lakh on Karur Vysya Bank for violating rules.
“The Reserve Bank of India (RBI) has, by an order dated March 21, 2023, imposed a monetary penalty of ₹30.00 lakh (Rupees Thirty lakh only) on Karur Vysya Bank Ltd. (the bank) for non-compliance with certain provisions of the Reserve Bank of India (Frauds- Classification and reporting by commercial banks and select FIs) directions 2016," said RBI.
A Select Scope Inspection (SSI) of Karur Vysya Bank was conducted by central bank during the period from 21 February, 2022 to 4 March, 2022.
An examination of the SSI report and all related correspondence pertaining to the same revealed that the bank failed to report a few accounts as frauds to RBI within a week of the respective Joint Lenders’ Forum (JLF) decisions to do so.
A notice was issued to Karur Vysya Bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions issued by central bank, press release said.
After considering the bank’s reply to the notice, oral submissions made during the personal hearing and additional submissions made by it, the RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty on the bank, a press release said.
Karur Vysya Bank reported a 56 per cent jump in profit at ₹289 crore for the quarter ended December 2022, as against net profit of ₹185 crore in the same quarter of the preceding financial year.
Total income increased to ₹2,013 crore in the quarter from ₹1,600 crore in the year-ago period.
On Friday, the company's scrip ended 0.15 per cent up at ₹97.65 on BSE.