| RBI fines ING Vysya, HDFC Bank, IDBI |
| OUR BANKING BUREAU / Mumbai February 28, 2006 |
| The IPO allotment scam has claimed more victims. The Reserve Bank of India today imposed financial penalties on Industrial Development Bank of India (IDBI) and ING Vysya Bank and fined HDFC Bank for the second time since January 23. This takes the total number of banks penalised for their role in the scam to nine. The penalties were imposed for violating the know-your-customer (KYC) norms, breaching prudent banking practices and not adhering to directives and guidelines for granting loans against shares/IPOs, the RBI said in a statement. HDFC Bank has been fined Rs 25 lakh, ING Vysya Bank Rs 10 lakh and IDBI Rs 5 lakh. Last month, the RBI had penalised seven banks |
