Mumbai— The Reserve Bank of India (RBI) has imposed a penalty of ₹1,66,868.84 on Union Bank of India for discrepancies related to soiled note remittances and ATM cash management, the bank disclosed on Saturday.
In a regulatory filing with the stock exchanges, Union Bank of India stated: “In compliance with Regulation 30(4), read with Schedule III, Part A, Clause 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that the Reserve Bank of India has imposed a penalty of ₹1,66,868.84 (Rupees one lakh sixty-six thousand eight hundred sixty-eight and eighty-four paise only).”
The penalty was levied following the RBI’s observations of irregularities in the bank’s remittance of soiled currency notes and issues related to ATM cash-out practices.
Despite the regulatory action, Union Bank clarified that the penalty has no significant impact on its financial performance, operations, or other activities. The bank also noted that it has implemented necessary preventive measures to avoid similar issues in the future.
Union Bank of India recently reported strong earnings for the quarter ended March 2025, with net profit surging 50.6% year-over-year to ₹4,985 crore. Net interest income rose modestly to ₹9,514 crore, up from ₹9,437 crore in the same quarter last year. However, the bank’s net interest margin slightly declined to 2.87% from 2.91% in the previous quarter.
The bank’s asset quality showed improvement, with gross non-performing assets (NPA) falling to 3.6% from 3.85% in the December quarter. Net NPA, however, rose slightly to 0.82% from 0.63%.
Union Bank’s board has recommended a dividend of ₹4.75 per equity share for the financial year 2024–25. The dividend payout is subject to statutory and shareholder approval at the upcoming 23rd Annual General Meeting. (Source: IANS)
