Axis Bank calls banking licence report "false"

On Friday, the Income Tax department had unearthed 44 fake accounts during a raid at an Axis Bank branch.

Axis Bank on Monday clarified that the news published in a regional newspaper alleging consideration of regulatory action against the bank, is "false" and "malafide".

In a regulatory filing, the bank said, "In this connection, we strongly deny the contents of the said article and we reiterate that the bank has strong systems and controls as per the norms prescribed by the RBI. We firmly believe that said news is intended to spread panic amongst the general public, demoralize the staff and damage the reputation of the bank".

The bank's clarification came in after local Hindi newspaper Dopahar reported that the bank is likely to lose its banking licence due to illegal activities involving bank's employees.

After the bank's response, the Reserve Bank of India also clarified that it has not initiated any action to cancel the banking licence.

The central bank said, "RBI has not initiated any action to cancel the banking licence of Axis Bank in the wake of certain allegations about some serious irregularities in transactions relating to deposit/exchange of Specified Bank Notes in a few branches of the bank. The clarification comes in the background of rumours in a segment of the media that the bank was likely to lose its banking licence".

Last week, India's third largest bank, had suspended nineteen employees across the country for allegedly involved in illegal practices in exchanging new currency post demonetisation.

In today's notification, the bank said, "We are committed to adhering to the highest standards of governance in all aspects our business and to provide the best services to our valued customers".

After suspending 19 employees, on Friday, the Income Tax department had unearthed 44 fake accounts during a raid at an Axis Bank branch in central Delhi`s Chandni Chowk area.

An IT official said that about Rs 100 crore were deposited in these accounts with withdrawn currency notes since November 8.

Meanwhile, Axis Bank issued a statement in which it said that strict action will be taken in the matter.

"Strict action will be taken against any employee found deviating from the guideline. We would also like to add that we are cooperating with the investigating agencies," Axis Bank had spokesperson said.