The Reserve Bank of India (RBI), by an order dated 7 July 2022, imposed a monetary penalty of Rs 5.72 crore on Federal Bank due to deficiencies in regulatory compliance.
RBI imposed the penalty for non-adherence with the provisions of 'Reserve Bank of India (financial services provided by banks) Directions, 2016'.Federal Bank failed to ensure that no incentive (cash or non-cash) was paid to its staff engaged in insurance broking/corporate agency services by the insurance company.
The private lender's standalone net profit rose 13.13% to Rs 540.54 crore on 2.72% increase in total income to Rs 3948.24 crore in Q4 FY22 over Q4 FY21.
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1282 branches, 1885 ATMs/recyclers as on 31st March 2022.
Shares of Federal Bank rose 0.41% to Rs 97.40 on Friday, 8 July 2022.
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