RBI imposes fine of INR 4.47 mln on Bandhan Bank for non-compliance of norms
This story was originally published at 18:55 IST on 29 August 2025
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MUMBAI – The Reserve Bank of India Tuesday imposed a monetary penalty of INR 4.47 million on Bandhan Bank on account of the bank's violation of a section of the Banking Regulation Act, 1949, the central bank said in a release Friday. The release also said the private sector lender did not comply with certain directions issued by the central bank which pertained to automation of income recognition, asset classification and provisioning processes in banks.
The bank paid remuneration in the form of commission to certain employees and it also carried out manual intervention through back-end in respect of data of certain accounts and had not captured the audit logs of access with specific user details in the system, the release said. These actions of the bank reflected non-compliance to central bank's directions and, therefore, the regulator imposed the monetary penalty.
"The action is based on deficiencies in statutory and regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the release said. The Kolkata-based lender reported the worst on-year fall in its net profit for the quarter ended June in five quarters as provisions jumped. Bandhan Bank's net profit fell 65% on year to INR 3.72 billion. On Friday, shares of the bank closed 0.7% lower at INR 161.80 on the National Stock Exchange. End
Reported by Vidhushi RajPurohit
Edited by Akul Nishant Akhoury
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