New England Indian Community -
| | | | | | | | | | | |


Kotak Bank promoter donated electoral bonds worth Rs 60 cr, but RBI cracks down on lender to protect customers

Author : IANS

Politics Read Latest News and Articles

Share With Your Friends

Add an Article

View All Contributions

Add To My Favorite

Add A Picture

New Delhi, April 24 (IANS) Infina Finance, one of the promoter group entities of Kotak Mahindra Bank which was barred by the RBI on Wednesday from onboarding new customers, had donated electoral bonds worth Rs 60 crore to the BJP.

Infina Finance, owned by the Kotak family, is listed as one of the promoter group entities of Kotak Mahindra Bank which has now been stopped by the RBI, with immediate effect, from taking on new customers and issuing fresh credit cards.

The RBI order issued on Wednesday said business restrictions on Kotak Mahindra Bank have been imposed in the interest of the customers as the Uday Kotak-controlled bank was assessed to be deficient in its IT Risk and Information Security Governance.

BSE data shows that, as of March 2024, the promoter and promoter group entities hold a 25.89 per cent stake in Kotak Mahindra Bank.

Uday Kotak is the promoter and single-largest shareholder of Kotak Mahindra Bank, with a 25.71 per cent stake. The remaining 0.18 per cent stake is held by other promoter group entities.

Infina Finance donated electoral bonds worth Rs 60 crore to the BJP which were purchased in the denomination of Rs 1 crore in 2019, 2020 and 2021, according to data submitted by the State Bank of India (SBI) to the Election Commission.

The RBI order states: “In the absence of a robust IT infrastructure and IT Risk Management framework, the Kotak Mahindra Bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024, resulting in serious customer inconveniences. The bank is found to be materially deficient in building necessary operational resilience on account of its failure to build IT systems and controls commensurate with its growth.”



Copyright and Disclaimer: All news and images appearing in our news section, search engines and social media are provided by IANS. If you face any issues related to the content/images, please contact our news service provider directly. We are not liable/responsible for any content/images related to the news service provider.

Latest News

View More News

More News Articles

'Fighter' actor Mahesh Shetty believes in travelling for experience, not for social media posts

'I will not lie...': Kohli recalls feelings before World Cup debut match in 2011

England, Pakistan players gain big; Suryakumar remains top ICC batter in latest T2OI rankings

Dino Morea's summer fitness secrets: 60 pc weight training, 30 pc cardio, 4-5 litres of water a day

'Whenever he performs, we win,' Cummins, Head told Abhishek Sharma's father