RBI slaps penalty of Rs 3 crore on Punjab National Bank

RBI on Monday imposed an aggregate penalty of Rs 3 crore on Punjab National Bank under the Banking Regulation Act, 1949.

 "...Reserve Bank of India (RBI) has imposed an aggregate penalty of Rs 3 crore (Rs 30 million) on the Bank in exercise of powers conferred under Section 47 (A) (1) (c) read with Section 46 (4) (i) of Banking Regulation Act, 1949," Punjab National Bank said in a filing to the BSE.

Though the amount of penalty is not material to the size of the bank, reporting is done in terms of Sebi (LODR) Regulations, 2015, it added. 

"The bank has taken necessary preventive measures or comprehensive action plan to avoid its recurrence," cited the Indian multinational banking and financial services company in a statement. 

Besides, the central bank on Monday had also imposed penalty of Rs 5 crore on Bank of Baroda (BOB) and Rs 2 crore on HDFC Bank on the back of irregularities found in the two banks. 

The stock of Punjab National Bank (PNB) on Monday closed up 8.23% or Rs 9.90 at Rs 130.15 on the BSE. 

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