RBI Fines IndusInd Bank ₹27 Lakh for Non-Compliance
The Reserve Bank of India (RBI) has slapped a ₹27.3 lakh penalty on IndusInd Bank for failing to adhere to banking regulations, specifically for opening savings accounts for ineligible entities.
In a statement released on November 20, the RBI explained that the fine was imposed due to violations of its 2016 Interest Rate on Deposits directions. The penalty stems from findings made during a statutory inspection of the bank's financial status as of March 31, 2023.
The RBI's investigation revealed non-compliance with its rules, prompting the central bank to issue a notice to IndusInd Bank, requiring an explanation for the breach. Following the bank's response and a personal hearing, the RBI confirmed that the penalty was warranted based on its findings.
While the penalty focuses on regulatory compliance, the RBI noted that it does not affect the validity of any customer transactions.
In financial news, IndusInd Bank reported a significant 39.5% year-on-year drop in consolidated net profit for the July-September quarter, totaling ₹1,331.29 crore, down from ₹2,202.16 crore in the same period last year. Despite this, the bank's net interest income (NII) rose 5% year-on-year to ₹5,347 crore, with a net interest margin (NIM) of 4.08%, down from 4.29% in the previous year.