RBI Imposes Rs 30 Lakh Monetary Penalty on Bank Stock Soaring 110% in 1-Yr

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RBI Imposes Rs 30 Lakh Monetary Penalty on Bank Stock Soaring 110% in 1-Yr
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the commercial bank Karur Vysya Bank (NS: KARU ) tanked 5% on Monday to hit the session’s low at Rs 92.7 apiece after the Reserve Bank of India imposed a monetary penalty on the bank.

The banking regulator has imposed a monetary penalty worth Rs 30 lakh on the Tamil Nadu-based bank for failure to comply with certain provisions of RBI.

Karur Vysya Bank has been fined with a hefty penalty for non-compliance with provisions of directions issued by RBI on 'Reserve Bank of India (Frauds - Classification and reporting by commercial banks and select Fls) directions 2016', the scheduled commercial bank informed the bourses in a regulatory filing.

The bank executed an agreement with SBI Life Insurance Company (NS: SBIL ) last week,  as an additional bancassurance partner in the life insurance category.

Karur Vysya Bank is a mid-cap stock that has provided multibagger returns to its shareholders, as its shares have rallied by more than 110% in the past one year, and have soared 133.5% from their 52-week low of Rs 41.75 apiece.

The stock closed 0.1% higher at Rs 97.5/share on Monday.

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