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Corporation Bank slips as RBI imposes penalty of Rs 1.50 crore

Corporation Bank slips as RBI imposes penalty of Rs 1.50 crore

Corporation Bank is currently trading at Rs. 23.75, down by 0.45 points or 1.86% from its previous closing of Rs. 24.20 on the BSE.

The scrip opened at Rs. 24.20 and has touched a high and low of Rs. 24.20 and Rs. 23.25 respectively. So far 49177 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. 13.60 on 15-Oct-2019.

Last one week high and low of the scrip stood at Rs. 25.80 and Rs. 22.75 respectively. The current market cap of the company is Rs. 14206.22 crore.

The promoters holding in the company stood at 93.50%, while Institutions and Non-Institutions held 4.50% and 2.00% respectively.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.50 crore on Corporation Bank for non-compliance with certain provisions of directions issued by RBI on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances – Divergence in NPA Accounts’, ‘Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’, ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’, ‘Framework to Revitalise the Distressed Assets in the Economy – Rectification and Restructuring’, ‘End Use of Funds – Monitoring’, ‘Discounting/Rediscounting of Bills by Banks’ and ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’.

The penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and 51 (1) of the Banking Regulation Act, 1949. 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.

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