*IndusInd Bank: ED investigating case on remittance transactions during 2011-14 – The Hindu BusinessLineq

Clipped from: https://www.thehindubusinessline.com/money-and-banking/indusind-bank-ed-investigating-caseon-remittance-transactions-during-2011-14/article65634880.ece

Filed STRs, police complaints; have no credit exposure to entities, says bank

Private sector lender IndusInd Bank on Wednesday said the Directorate of Enforcement, Chennai Zonal Office (ED), has been investigating a few entities for certain alleged irregularities in remittances for import transactions conducted from 2011 to 2014.

The bank had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities during the relevant period for many of these entities,” it said in a stock exchange filing in a clarification on speculation. It also said it had filed complaints with the police authorities in 2015 against some of the unscrupulous entities.

‘No credit exposure’

As part of the investigation, the ED has filed an FIR dated July 9, 2022, with Chennai CCB-1 police station against some of those entities and few employees of the lender, most of whom have already separated from the bank. “There is no credit exposure of the bank to these entities,” IndusInd Bank said, adding that it continues to extend full cooperation and assistance to the law enforcement agencies.

It further said the matter was subject of scrutiny by the Reserve Bank of India (RBl) in October 2015 and a penalty was also levied on the bank in 2016. IndusInd Bank’s scrip fell 3.42 per cent on the day to close at ₹817.75 apiece on BSE.

Published on July 13, 2022

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