A penalty has been slapped on ICICI Bank for non-compliance with directions issued by RBI on direct sale of securities from its HTM portfolio. Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of Rs58.9 crore on ICICI Bank Ltd, the country’s largest private sector lender, for failing to adhere to its directives regarding the sale of securities from the held-to-maturity, or HTM, portfolio. “The Reserve Bank of India has imposed through an order dated March 26, 2018, a monetary penalty of Rs589 million (or Rs58.9 crore) on ICICI Bank Ltd (the bank) for non-compliance with directions issued by RBI on direct sale of securities from its held-to-maturity portfolio and specified disclosure in this regard,” the central bank said in a statement released on Thursday. “RBI has imposed a penalty on the bank for continued sale of government securities classified as HTM. ICICI Bank had continued with the sales from HTM category for a few weeks during the quarter ended March 31, 2017, due to a genuine misunderstanding on the timing of the applicability of RBI’s direction in this matter,” ICICI Bank clarified.

Source: Mint March 29, 2018 07:22 UTC