look news india
The Reserve Bank of India (RBI) has imposed a fine of Rs 59.20 lakh on South Indian Bank. The bank gave this information on Friday. This penalty has been imposed for non-compliance of certain instructions on interest rates and customer service on deposits in banks. RBI said the bank imposed penalty on some customers for non-maintenance of minimum balance/average minimum balance without informing them through SMS/e-mail or letter. South Indian Bank has also claimed some NRE savings deposit accounts.
The Reserve Bank of India had conducted the inspection for supervisory assessment of South Indian Bank with respect to the financial position of the bank as on March 31, 2023. The notice was issued to South Indian Bank Limited on the basis of non-compliance with RBI instructions and related correspondence. After considering the bank's reply to the notice and the oral submissions made during the personal hearing, RBI found that the allegations made against the bank are true and warrant monetary penalty.
RBI said the penalty is based on deficiencies in statutory and regulatory compliance and is not intended to have any impact on the validity of any transaction or agreement entered into by the bank with its customers.
Profit increased by 18% in the second quarter
South Indian Bank's net profit in the July-September 2024 quarter increased by 18.15 percent year-on-year to Rs 324.69 crore. A year ago this profit was Rs 274.81 crore. Operating profit for the September 2023 quarter increased by 19.51 per cent to Rs 550.25 crore as against Rs 460.44 crore. Gross NPAs declined 56 bps year-on-year to 4.40 per cent in the September 2024 quarter from 4.96 per cent a year ago. Net NPAs declined by 39 bps to 1.31 per cent from 1.70 per cent a year ago.