Shares of Bank of India declined today after the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 40 million on the Bank for contravention of norms, including one related to 'Frauds - Classification and Reporting'.
RBI's statutory Inspection for Supervisory Evaluation (ISE) of Bank of India was conducted with reference to its financial position as on March 31, 2019.The bank had also conducted a review and submitted a Fraud Monitoring Report (FMR) dated January 1, 2019 pertaining to detection of fraud in an account.
Examination of the risk assessment report pertaining to the ISE and the FMR revealed non-compliance with/contravention of directions, viz., breach of stipulated transaction limits; delay in transfer of unclaimed balances to DEA Fund; delay in reporting a fraud to RBI and sale of a fraudulent asset.
In furtherance to the same, a notice was issued to the bank advising it to show cause why penalty should not be imposed on it for such violations of the said directions.
After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions submitted by the bank, RBI came to the conclusion that the charges of non-compliance with/contravention of the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty.
Shares of Bank Of India are trading at Rs 82.25, down Rs 2.4, or 2.84% at the Bombay Stock Exchange (BSE) on Tuesday at 2:29 p.m.
The scrip has touched an intra-day high of Rs 84.70 and low of Rs 81.35. The total volume of shares traded at the BSE is 1,231,893.In the earlier session, the shares gained 2.86%, or Rs 2.35, at Rs 84.65.
Currently, the stock is trading down 18.93% from its 52-week high of Rs 101.45 and above 132.67% over the 52-week low of Rs 38.