Markets

Lakshmi Vilas Bank, Syndicate Bank shares fall after RBI fine

Photo for representation: a branch of Lakshmi Vilas Bank.

Photo for representation: a branch of Lakshmi Vilas Bank.   | Photo Credit: Ch. Vijaya Bhaskar

The Reserve Bank has imposed a monetary penalty of ₹1 crore on Lakshmi Vilas Bank and ₹75 lakh on Syndicate Bank

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.

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Printable version | May 29, 2020 7:11:06 AM | https://www.thehindu.com/business/markets/lakshmi-vilas-bank-syndicate-bank-shares-fall-after-rbi-fine/article29688987.ece

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