On March 13, 2024, the central bank of the Nation, the Reserve Bank of India (RBI), imposed monetary penalties on the Bank of India, private lenders Bandhan Bank and Indostar Capital Finance Limited.
RBI imposed a monetary penalty of ₹1,40,76,000 on Bank of India for non-compliance with certain directions issued by RBI on ‘Interest Rate on Deposits’, ‘Customer Service in Banks’, ‘Interest Rate on Advances’, ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, and ‘Membership of Credit Information Companies (CICs)’ and contravention of provisions of Credit Information Companies Rules, 2006 (ClC Rules).
On Bandhan Bank, RBI slapped a penalty of ₹29.55 lakh for non-compliance with certain directions on ‘Reserve Bank of India (Interest Rate on Deposits) Directions, 2016. This penalty follows a statutory inspection for Supervisory Evaluation (ISE 2022) by RBI with reference to its financial position as of March 31, 2022.
In addition, the Reserve Bank of India (RBI) imposed a monetary penalty of ₹13.60 lakh on Indostar Capital Finance Limited by an order dated February 21, 2024. The penalty has been exercised for non-compliance with the ‘Monitoring of Frauds in NBFCs (Reserve Bank) Directions, 2016’ and with certain provisions of the Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016. This penalty has been imposed in the exercise of powers conferred on RBI under the provisions of clause (b) of sub-section (1) of section 58G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934.
On March 14, 2024, the share price of Bank of India opened at ₹127.65 and at 12:00 PM, touched a day low of ₹125.40. Bandhan Bank shares opened at ₹178.40 and reached a day low of ₹173.45, while the shares of Indostar Capital Finance Ltd opened at ₹185.55 and touched a day low of ₹180.00.
Bank of India engaged in the banking operation. The bank’s segments include Treasury Operations, Wholesale Banking and Retail Banking.
Bandhan Bank operates as a commercial bank focused on serving underbanked and underpenetrated markets in India.
Indostar Capital Finance Ltd is a registered systemically-important non-deposit-taking NBFC. The company’s business segments include Commercial Vehicle Finance, housing finance, SME finance, and corporate lending.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Mar 14, 2024, 3:35 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
