IndusInd Bank on Wednesday said it will take “appropriate action” against any of its employees if found indulging in any illegitimate transaction related to an old case being probed by the enforcement directorate. The matter relates to the Directorate of Enforcement (Chennai zonal office) investigating a few entities for certain “alleged irregularities” in remittances for import transactions conducted during 2011-2014, IndusInd Bank said in a regulatory filing.
Shares of the bank tanked 3.42 per cent to Rs 817.75 apiece on BSE after reports relating to an old case of irregularities in import transactions.
The private sector lender said the clarification comes against the backdrop of media reports regarding this old case. The bank said it had also filed a suo moto suspicious transaction reports (STRs) with the regulatory authorities during the relevant period for many of these entities. “The bank had also filed complaints with the police authorities in 2015 against some of the unscrupulous entities. Incidentally, the matter was subject of scrutiny by the RBl in October 2015 and a penalty was levied on the bank which was intimated to the stock exchanges vide the Bank’s letter dated July 28, 2016,” IndusInd Bank said.
The Directorate of Enforcement (ED) on July 9, 2022, filed a First Information Report (FIR) with a Chennai police station against some of those entities and few employees of the bank, IndusInd Bank said, adding most of those staff have already separated from the bank. The bank said there is no credit exposure of the bank on these entities and it continues to extend full cooperation and assistance to the law enforcement agencies.
The bank is duty bound to take “appropriate action against any of the named employees if found to have deliberately facilitated/abetted the conduct of any illegitimate transaction,” IndusInd Bank said in the filing.
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