The Reserve Bank of India (RBI) has imposed fines of more than Rs 27 lakh on Punjab and Sindh banks. The RBI imposed a fine on Punjab and Sindh Bank for allegedly violating the rules. A show cause notice was issued to Punjab and Sindh Bank. The answer given was unsatisfactory and the rules were violated. As a result, the bank has been fined Rs 27.5 lakh. According to the RBI, Punjab and Sindh Bank have not complied with some of the guidelines issued on external benchmark-based lending. The RBI, meanwhile, said it did not intend to question the validity of any transactions or agreements made by the bank with its customers.
The stock was trading at Rs 15.30 on Friday. The stock has lost 0.97 percent since the previous day. Punjab and Sindh Bank's profit doubled to Rs 346 crore in the fourth quarter of last fiscal. According to the bank, the decline in non-performing loans (NPLs) has boosted their profits. Punjab and Sindh Bank had posted a net profit of Rs 160.79 crore in the same quarter of the financial year 2020-21.