HDFC Bank share price falls after RBI imposes monetary penalty

The private lender was fined Rs 10 crore by the Reserve Bank of India for deficiency in “regulatory compliance”.


31 May, 2021 15:59
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HDFC Bank share price fell in the early trade on May 31 after the Reserve Bank of India (RBI) imposed a penalty of Rs 10 crore on the private lender for deficiency in “regulatory compliance”.

“We wish to inform you that the Reserve Bank of India (RBI) has imposed, by an order dated May 27, 2021, a monetary penalty of Rs 10 crore on HDFC Bank,” the company said in its release.

This action is based on deficiencies in 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 RBI said.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949 (Act), for marketing/sale of third party non-financial products in contravention of provisions of Section 6(2) and Section 8 of the Act.

Net interest income (NII), the difference between interest earned and interest expended, grew 12.6 percent to Rs 17,120.15 crore in Q4FY21 compared to Rs 15,204.06 crore in the year-ago period.

At 0922 hours, HDFC Bank was quoting at Rs 1,497.15, down Rs 4, or 0.27 percent, on the BSE.