The Reserve Bank of India ( RBI) imposed a monetary penalty of Rs. 58.9 crore on ICICI Bank Limited for non-compliance with the directions issued by the RBI on direct sale of securities from its Held To Maturity (HTM) portfolio and specified disclosure in this regard. The Central Bank stated this penalty has been imposed in the exercise of powers vested with the RBI under the provisions of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to its directions/guidelines. Shares of ICICI Bank were down nearly 2 percent to Rs 278 in early morning trade in the Bombay Stock Exchange. The penalty was imposed for non-compliance with directions on direct sale of securities from its HTM (held-to-maturity) portfolio and its disclosure.

This action is based on the 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. Banks have to mandatorily keep 19.5 percent of their deposits in government securities as statutory liquidity ratio (SLR) under RBI guidelines.