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Axis Bank today said it will investigate thoroughly the allegations that the bank is involved in money laundering.
"Axis Bank has systems and processes that are robust and fully compliant with extant regulations. We will examine whatever information that is brought to our notice and investigate thoroughly. The bank has built a strong customer franchise over the years and maintain high corporate governance standards," it said in a statement.
"Any deviations to such standards are viewed very seriously. Best practices across businesses are followed by the bank and we are confident that all our businesses will live up to the high standards we have set for ourselves as bank," it added.
Earlier today, Cobrapost, an online magazine, claimed that its undercover investigation has revealed that lenders like ICICI Bank, HDFC Bank and Axis Bank run money laundering rackets.
These money laundering services are openly offered to even walk-in customers who wish to launder money. "A variety of options for laundering ill-gotten cash are being offered brazenly. These money laundering services are being offered practically as a standard product across the country," Cobrapost said in a press statement.
Cobrapost claims that it has captured the money laundering racket run by these banks on video tape, which runs into "hundreds of hours".
ICICI Bank, the largest private sector lender in India, said it has constituted a high level inquiry committee to probe allegations. The committee will submit its report within two weeks.
"We are deeply concerned with the media reports. We want to assure our customers and all our other stakeholders that we are committed towards adherence to the high standards of business conduct, which is expected of us. We have constituted a high level inquiry committee to investigate into the matter and submit its findings in two weeks," the bank said in a statement.
HDFC Bank also said it is investigating the allegations.
