The Reserve Bank of India ( RBI) has imposed a penalty of Rs 10 lakh on India’s biggest private bank, HDFC Bank. According to the notifications issued by Reserve Bank of India, this penalty was imposed on HDFC Bank as they failed to maintain minimum capital required in Subsidiary General Ledger (SGL), which resulted in bouncing of SGL. The bank received the order on 9 December and the disclosure was made on 10 December, after market hours.
In their notification, RBI said, “The RBI has, vide its letter dated December 4 (which was received by the bank on December 9), imposed a monetary penalty of Rs10 lakh on the bank for bouncing of SGL, which lead to shortage of balance in certain securities in the bank’s CSGL account on November 19,”
Recently, the stock's valuation declined after RBI announced a halt on the launch of the bank's digital business generating activities planned under its program Digital 2.0 and sourcing of new credit card customers.
HDFC Bank informed analysts that improving the architectural efficiency of its IT systems would take three months while it would take six weeks to automate switchover to disaster recovery system.
Shares of HDFC Bank opened higher at Rs 1,390.05 on Friday and moved lower at Rs1382.40 on NSE, during 11 hours, Friday.
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