Date:28/02/2006 URL: http://www.thehindubusinessline.com/2006/02/28/stories/2006022803030100.htm

Back IPO scam: HDFC Bank, 2 others fined

Our Bureau

Mumbai , Feb. 27

The Reserve Bank of India on Monday fined HDFC Bank, IDBI and ING Vysya Bank for violation of Know Your Customer norms and other irregularities in relation to the recent IPO scam.

HDFC Bank has been slapped with the highest penalty of Rs 25 lakh; ING Vysya Bank - Rs 10 lakh and IDBI Ltd Rs 5 lakh.

This is the second time HDFC Bank has been fined for violation of KYC norms. In January, the bank was imposed a penalty of Rs 5 lakh.

According to an RBI release, these banks have been fined, "for violation of regulations on KYC norms, for breach of prudent banking practices and for not adhering to its directives/guidelines relating to loans against shares/ IPO."