ICICI Bank , one of India's leading private sector banks, has been hit with a ₹75 lakh monetary penalty by the Reserve Bank of India (RBI) for non-compliance with regulatory directives. The central bank's action comes in response to two specific violations identified during a Statutory Inspection for Supervisory Evaluation.

Regulatory Breaches

The RBI's order outlines two primary areas of non-compliance:

1. Property Valuation Issues: ICICI Bank failed to carry out property valuations by independent valuers for certain mortgage loans, violating RBI's directions on 'Valuation of Properties - Empanelment of Valuers'.

2. Current Account Violations: The bank opened and maintained certain current accounts in contravention of regulatory requirements, specifically breaching the RBI's guidelines on 'Opening of Current Accounts by Banks – Need for discipline'.

Regulatory Action

The monetary penalty was imposed under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949. This action followed a thorough process:

• The violations were identified during the Statutory Inspection for Supervisory Evaluation (ISE) conducted by RBI.
• ICICI Bank was issued a show-cause notice and given an opportunity to respond.
• The bank provided a reply, made additional submissions, and participated in a personal hearing.
• After considering all evidence, the RBI found the charges against ICICI Bank to be sustained, warranting the imposition of the monetary penalty.

RBI's Clarification

The central bank emphasized that this penalty is based on regulatory compliance deficiencies and does not pronounce upon the validity of any transactions or agreements between the bank and its customers. Furthermore, the RBI stated that this monetary penalty is without prejudice to any other action that may be initiated against ICICI Bank.

ICICI Bank's Disclosure

In compliance with regulatory requirements, ICICI Bank disclosed this penalty through a filing to the stock exchanges. The bank acknowledged the receipt of the RBI's order and provided details of the penalty in its disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This incident underscores the importance of strict adherence to regulatory guidelines in the banking sector and highlights the RBI's commitment to maintaining discipline in the financial system. It serves as a reminder for financial institutions to strengthen their compliance mechanisms and internal controls.

ICICI Bank , one of India's leading private sector banks, witnessed a significant block trade on the National Stock Exchange (NSE) on Wednesday, highlighting substantial institutional interest in the bank's shares.

Block Trade Details

The block trade involved approximately 6,497,849 shares of ICICI Bank, which were transacted at a price of Rs. 1,452.30 per share. The total value of this transaction amounted to a staggering Rs. 943.68 crores, marking a notable event in the day's trading session.

Market Impact

This large-scale transaction underscores the continued investor confidence in ICICI Bank's stock. Block trades of this magnitude are often indicative of institutional trading activity, suggesting that large investors or funds may be adjusting their positions in the bank.

ICICI Bank's Market Position

ICICI Bank, with its strong presence in retail and corporate banking sectors, continues to be a focus for institutional investors. The bank's performance and market position have made it an attractive option for large-scale investments, as evidenced by this substantial block trade.

While the specific parties involved in this transaction remain undisclosed, the sheer size of the trade is likely to draw attention from market analysts and other investors. It may potentially influence the short-term trading patterns of ICICI Bank's stock on the NSE.

Investors and market watchers will be keen to observe any potential impact this significant block trade might have on ICICI Bank's stock price and trading volume in the coming days. However, it's important to note that block trades, while substantial, do not necessarily indicate a change in the company's fundamentals or long-term outlook.