RBI Action: Central Bank of India was issued a notice asking it to explain why it should not be fined for failing to comply with the instructions. After considering the bank’s reply, RBI found that the allegations against the bank were correct. RBI has imposed a fine of Rs 96.4 lakh on Sonali Bank PLC for non-compliance of certain norms including KYC Direction, 2016
RBI Action: The Reserve Bank of India (RBI) has imposed a fine of Rs 1.45 crore on the public sector Central Bank of India. This fine has been imposed for non-compliance of certain instructions related to ‘Loans and Advances’ and ‘Customer Protection’. In a statement issued by the RBI, it was said that the central bank had conducted a statutory inspection of the Supervisory Evaluation (ISE 2022) of Central Bank of India with reference to its financial position as on March 31, 2022.
The bank was issued a notice asking it to explain why it should not be fined for failing to comply with the instructions. After considering the bank’s reply, RBI found that the allegations leveled against the bank were correct. The bank had sanctioned a working capital demand loan to a company in lieu of the amount received from the government as subsidy. Along with this, the bank was also unable to deposit the amount involved in some unauthorized electronic transaction cases in the customers’ account within the stipulated time.
Central Bank of India’s profit increased by 41% in Q4
Central Bank of India’s net profit rose 41 per cent to Rs 807 crore in the January-March quarter of FY 2023-24. Earlier in the same quarter of FY 2022-23, the bank had a net profit of Rs 571 crore. Its total income increased to Rs 9,699 crore in the quarter ended March 2024 from Rs 8,567 crore in the same quarter a year ago. The bank’s gross NPA stood at 4.5 per cent of total loans in the March 2024 quarter as against 8.44 per cent a year ago. Net NPA declined to 1.23 per cent of total loans from 1.77 per cent in the same quarter a year ago.
Sonali Bank PLC fined Rs 96.4 lakh
RBI said in another statement that Sonali Bank PLC has been fined Rs 96.4 lakh for non-compliance of certain norms including KYC Direction, 2016. The Reserve Bank of India says that the penalty imposed in both the cases is based on deficiencies in regulatory compliance. Its purpose is not to decide on the validity of any transaction or agreement made by the entities with their customers.
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