MUMBAI: Shares of major banks
came under intense selling pressure in early trade on Thursday as
Cobrapost allegations on select banks flouting RBI norms spooked
sentiment.
Online magazine Cobrapost conducted a sting operation allegedly showing employees of private sector banks accepting black money to convert them into white money.
Shares of HDFC Bank, ICICI BankBSE 1.95 % and Axis BankBSE 1.06 % had slumped sharply in the morning. Other factors like no rate cut by the Reserve Bank of India and re-working of tax treaty with Mauritius also weighed on sentiment.
Reacting to the sting operation, ICICI Bank in a statement said that the ICICI Group conducts its business with the highest level of compliance to legal and regulatory requirements.
"We are deeply concerned with the media reports. We want to assure our customers and all stakeholders that we are committed towards adherence to the high standards of business conduct, which is expected of us. We have constituted a high-level inquiry committee to investigate into the matter and submit its findings in 2 weeks," an ICICI Bank spokesperson said.
After the knee-jerk reaction, the stocks have pared most of the intraday losses.
At 10:50 am, ICICI Bank was at Rs 1,081, down 0.45 per cent, on the BSE. It touched a high of Rs 1,101.60 and a low of Rs 1,060.10 in trade today.
HDFC Bank BSE 1.56 % was at Rs 631.20, down 0.61 per cent, on the BSE. It touched a high of Rs 640.05 and a low of Rs 615 in trade today.
Axis Bank was at Rs 1,340.10, down 0.54 per cent, on the BSE. It touched a high of Rs 1,347.34 and a low of Rs 1,300 in trade today.
Online magazine Cobrapost conducted a sting operation allegedly showing employees of private sector banks accepting black money to convert them into white money.
Shares of HDFC Bank, ICICI BankBSE 1.95 % and Axis BankBSE 1.06 % had slumped sharply in the morning. Other factors like no rate cut by the Reserve Bank of India and re-working of tax treaty with Mauritius also weighed on sentiment.
Reacting to the sting operation, ICICI Bank in a statement said that the ICICI Group conducts its business with the highest level of compliance to legal and regulatory requirements.
"We are deeply concerned with the media reports. We want to assure our customers and all stakeholders that we are committed towards adherence to the high standards of business conduct, which is expected of us. We have constituted a high-level inquiry committee to investigate into the matter and submit its findings in 2 weeks," an ICICI Bank spokesperson said.
After the knee-jerk reaction, the stocks have pared most of the intraday losses.
At 10:50 am, ICICI Bank was at Rs 1,081, down 0.45 per cent, on the BSE. It touched a high of Rs 1,101.60 and a low of Rs 1,060.10 in trade today.
HDFC Bank BSE 1.56 % was at Rs 631.20, down 0.61 per cent, on the BSE. It touched a high of Rs 640.05 and a low of Rs 615 in trade today.
Axis Bank was at Rs 1,340.10, down 0.54 per cent, on the BSE. It touched a high of Rs 1,347.34 and a low of Rs 1,300 in trade today.
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