State-owned lender IDBI Bank Ltd. will have to pay a Rs 3 crore penalty for non-compliance with income recognition and asset classification norms.
The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the Reserve Bank of India said in a statement on its website. Typically IRAC norms refer to the classification and provisioning of bad loans on bank books.
IDBI Bank is one of the 11 public sector banks currently under the prompt corrective action initiated by the RBI. As on Dec. 31, the bank had a gross non-performing asset ratio of 24.72 percent, the highest in the banking industry.