RBI imposes penalty of Rs. 58.9 crore on ICICI Bank

Apex bank RBI levied a penalty of Rs. 58.9 crore on the country’s biggest private bank, ICICI Bank for non-compliance in concern with the directions issued by RBI regarding the direct sale of securities in the held-to-maturity portfolio.

Acting on the powers vested in RBI to take similar action in case of failure of any bank in adhering to the mentioned directions or guidelines issued by RBI. However, this is the first incident of the apex bank imposing such a heavy penalty on a bank for non-compliance.

Recently, the ICICI Bank had gathered limelight for its alleged involvement in the Videocon Group loan exposure, relating to the bank’s CEO and MD Chanda Kochhar’s husband’s company NuPower Renewables.

ICICI Bank had recorded a growth of about 11 per cent on the bourses in the last one year. On Wednesday, the company hit an intraday high of Rs. 283 per share and an intraday low of Rs. 277.40 per share on BSE.

The stock had touched its 52-week high of Rs. 365.65 per share on January 29, 2018 and its 52-week low of Rs. 241.07 per share on April 24, 2017 on BSE, respectively. The stock closed at Rs. 278.40 per share, down by 1.94 per cent on BSE on Wednesday.