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Apr 05, 2013, 04.57 PM IST | Source: CNBC-TV18

RBI finds KYC violation in Cobra expose: Sources

The Reserve Bank of India (RBI) found violation of KYC (Know Your Customer) norms by HDFC Bank, ICICI Bank and Axis Bank allegedly involved in a money laundering expose done by Cobrapost.com, CNBC TV18 reported quoting sources.

The Reserve Bank of India (RBI) found violation of KYC (Know Your Customer) norms by HDFC Bank , ICICI Bank and Axis Bank allegedly involved in a money laundering expose done by Cobrapost.com, CNBC TV18 reported quoting sources.

An investigation carried out by RBI, according to sources, identified system failure to detect large cash transactions but not more than Rs 1-2 crore.

The investigation, sources told to CNBC-TV18, reveals that private banks allow customers to buy third party products in cash. Private banks do not verify KYC documents done by other banks.

In the Cobrapost sting operation, banks involved did not implement unique customer ID. At the same time, lapses were noted in KYC rules among cooperative banks as well.

Also Read: How RBI has damaged its credibility in Cobra's sting

HDFC Bank stock price

On August 22, 2014, HDFC Bank closed at Rs 841.55, down Rs 1.4, or 0.17 percent. The 52-week high of the share was Rs 861.00 and the 52-week low was Rs 558.40.


The company's trailing 12-month (TTM) EPS was at Rs 36.75 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 22.9. The latest book value of the company is Rs 180.22 per share. At current value, the price-to-book value of the company is 4.67.

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