India’s leading public sector bank Indian Bank has been fined Rs 20 lakh (approximately ₹5.85 lakh) in Sri Lanka. This penalty has been imposed due to non-compliance of Sri Lanka’s Financial Transaction Reporting Act (FTRA) 2006 and its rules. The bank informed about this penalty in its regulatory filing and promised to take corrective steps in future.
reason for fine
Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka found that Indian Bank had failed to comply with the FTRA and its related provisions.
- This fine is in the hands of the bank in Sri Lanka. Colombo And Jaffna Imposition has been made for non-compliance in matters related to branches.
- FIU has taken this step to ensure improvement in the functioning of Indian Bank.
Indian Bank statement
Indian Bank issued a statement saying:
“We have taken necessary steps to ensure compliance with the rules and avoid such incidents in future. Our branches operating in Sri Lanka have taken corrective action.”
The bank also clarified that it will follow all regulatory standards in future so that such incidents are not repeated.
Indian Bank’s financial performance
Bank performance in September 2024 quarter:
- Net Profit:
- bank’s net profit 36% increase With Rs. 2,706 crore.
- It was ₹1,988 crore in the same quarter last year.
- Net Interest Income (NII):
- NII rose 8% to ₹6,195 crore.
- Last year it was ₹5,740 crore.
- Improvement in asset quality:
- Gross Non-Performing Assets (NPA):
- by decreasing 3.48% (Previous quarter: 3.77%).
- Net NPA:
- by decreasing 0.27% Came to (previous year: 0.39%).
- Gross Non-Performing Assets (NPA):
Indian Bank’s presence in Sri Lanka
Indian Bank in Sri Lanka Colombo And Jaffna It operates through its branches in India.
- These branches play an important role in expanding financial services in Sri Lanka.
- The latest fine is a corrective opportunity for the bank, which it is using to strengthen its regulatory framework.
