ICICI Bank shrugs off RBI penalty, share price rises nearly 2%
The RBI on May 3 imposed a penalty of Rs 3 crore on the private lender for violating certain directions issued by the central bank.
May 04, 2021 / 10:36 AM IST
ICICI Bank share price rose nearly 2 percent intraday on May 4. A day earlier, the Reserve Bank of India (RBI) imposed a penalty of Rs 3 crore on the private lender for rule violations.
The penalty has been imposed for contravention of certain directions issued by the RBI on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’, the central bank said in a release.
"This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949 (the Act)," the RBI said.
This action was based on the deficiencies in regulatory compliance and was not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said.
The private sector lender on April 24 clocked a 260.5 percent year-on-year (YoY) growth in standalone profit at Rs 4,402.61 crore for the quarter ending March 2021.
At 1019 hours, ICICI Bank was quoting at Rs 604.15, up Rs 7.15, or 1.20 percent on the BSE.
The share touched a 52-week high of Rs 679.30 on February 16, 2021 and a 52-week low of Rs 285.70 on May 22. 2020. It is trading 11.06 percent below its 52-week high and 111.46 percent above its 52-week low.