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Corporation Bank gains despite RBI imposes penalty of Rs 2.5 million on the Bank

Corporation Bank gains despite RBI imposes penalty of Rs 2.5 million on the Bank

Corporation Bank is currently trading at Rs. 27.70, up by 2.15 points or 8.41% from its previous closing of Rs. 25.55 on the BSE.

The scrip opened at Rs. 26.00 and has touched a high and low of Rs. 28.60 and Rs. 26.00 respectively. So far 227946 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 2 has touched a 52 week high of Rs. 32.15 on 27-Feb-2019 and a 52 week low of Rs. 21.00 on 11-Oct-2018.

Last one week high and low of the scrip stood at Rs. 28.60 and Rs. 24.90 respectively. The current market cap of the company is Rs. 16603.89 crore.

The promoters holding in the company stood at 93.50%, while Institutions and Non-Institutions held 4.52% and 1.98% respectively.

The Reserve Bank of India (RBI) has imposed monetary penalty of Rs 2.5 million on Corporation Bank for non-compliance with certain provisions of directions issued by RBI on Know Your Customer (KYC) norms / Anti Money Laundering (AML) Standards and Opening of Current Accounts.

The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into account the failure of the banks to adhere to the aforesaid directions issued by RBI.

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 banks with their customers.

Corporation Bank is a Mangalore-based mid-sized public sector bank which was established in 1906.