- Before the penalty, RBI had conducted a statutory inspection of the bank concerning its financial position as of March 31, 2019, and the examination of the Inspection Report (IR) and all related correspondences.
The Reserve Bank of India (RBI) on Friday imposed a monetary penalty to the tune of ₹57.75 lakh on Suryoday Small Finance Bank for non-compliance. RBI said, this action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. On BSE, the small finance bank shares were on a bearish tone.
Before the penalty, RBI had conducted a statutory inspection of the bank concerning its financial position as of March 31, 2019, and the examination of the Inspection Report (IR) and all related correspondences.
During the inspection, RBI found non-compliance with its directions to the extent the bank failed to (i) furnish FMR to RBI, with respect to certain cases of fraud, within three weeks of their date of detection, and (ii) refer to State Police authorities certain cases of fraud committed by its staff.
Following this, RBI had issued a notice to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions.
“After considering the bank’s reply to the notice and oral submissions made in the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, to the extent of non-compliance with such directions,” RBI said in a statement.
On BSE, the SFB shares closed at ₹80 apiece down by 1.3%. It is a small cap in the banking space with a market valuation of ₹849.27 crore as of now.
On Friday, the bank announced to consider and approve the e unaudited financial results of the Bank for the quarter ended June 30, 2022 (Q1FY23) on August 4.
Suryoday Small Finance Bank is a new-age bank that went live on January 23rd, 2017. It is among the 10 companies and the only one from Maharashtra to obtain a ’Small Finance Bank’ licence from the Reserve Bank of India (RBI). Currently, it has an over 1.4 million customer base.
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