(FE)
The Reserve Bank of India (RBI) has imposed a penalty of `1 crore on Lakshmi Vilas Bank (LVB) for non-adherence to certain provisions of Income Recognition and Asset Classification (IRAC) norms. In a disclosure to stock exchanges, LVB said the fine was imposed for non-adherence to guidelines on IRAC norms and divergence in respect of two non-performing assets accounts aggregating to Rs.169.50 crore for the year ended March 2017.
In a note, the RBI said, the statutory inspection of the bank with reference to LVB financial position as on March 2017 revealed non-compliance on IRAC norms. Based on the inspection report, a notice was issued to LVB, advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.
