RBI imposes Rs 5-cr penalty on bank

Mumbai: The Reserve Bank on Friday said it has imposed a penalty of Rs 5 crore on South Indian Bank for non-compliance to its asset classification and know your customer (KYC) norms, among others. The action against the bank is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, the RBI said in a statement. Shares of the bank closed at Rs 25.60 a share on BSE, down 2.66 per cent. PTI