Shares of Lakshmi Vilas Bank and Syndicate Bank fell by up to 5% on Tuesday after the RBI imposed a monetary penalty on them for violating asset classification and fraud detection norms.
Lakshmi Vilas Bank scrip went lower by 4.96% to its lower circuit level as well as one-year low of ₹22.05 on the BSE.
Shares of Syndicate Bank also fell 2.24% to ₹24— its 52-week low.
The Reserve Bank has imposed a monetary penalty of ₹1 crore on Lakshmi Vilas Bank and ₹75 lakh on Syndicate Bank for violating asset classification and fraud detection norms.
“The Reserve Bank of India (RBI) has, by an order dated October 14, 2019, imposed monetary penalty of ₹1 crore on Lakshmi Vilas Bank for non-compliance with certain provisions of directions issued by RBI on ‘Income Recognition and Asset Classification (IRAC) norms,” RBI said in a release on Monday.
In a similarly worded release, it said a monetary penalty of ₹75 lakh has been imposed on Syndicate Bank for non-compliance with the directions issued by RBI on frauds classification and reporting; innovative housing loan products wherein upfront disbursal of loans is done.
