The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 3 crore on the private sector lender.
The penalty, imposed under section of the Banking Regulation Act, 1949, has been levied for shifting certain investments from HTM category to AFS category in May 2017.
The bank had transferred two separate categories of securities on two different dates from HTM to AFS in April and May of 2017, which it believed was permissible as per Master Circular on Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks' dated 1 July 2015.
RBI has held that the shifting of securities the second time in May 2017 without explicit permission was in contravention of RBI directions.
ICICI Bank is a private sector bank. The bank had a network of 5,266 branches and 14,136 ATMs at 31 March 2021.
The private lender reported net profit of Rs 4,403 crore in Q4-2021, up 260.61% compared with net profit of Rs 1,221 crore in Q4-2020. Total income during the quarter increased by 2.2% year-on-year (YoY) to Rs 23,953.02 crore.
The scrip rose 1.34% to currently trade at Rs 605 on the BSE.
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