Uco Bank Share Price: RBI keeps taking action against banks from time to time for violating the rules

Uco Bank Share Price: RBI keeps taking action against banks from time to time for violating the rules. Now the bank has imposed a penalty of crores of rupees on UCO Bank. Know which rules were not followed by the bank?

RBI Penalty on Uco Bank: The Reserve Bank of India (RBI) takes action against banks from time to time for violating the rules. Now RBI has imposed a fine of 2.68 crores on Uco Bank for violating some rules including opening a current account, deposit interest rate, and fraud classification. RBI said on Friday that the bank has also imposed a fine of Rs 2.1 lakh on Cent Bank Home Finance Limited for not following some provisions of 'Know Your Customer' (KYC) rules.

Penalty imposed for not following the rules

The central bank said that in both cases, a fine has been imposed for not following the prescribed rules. Its purpose is not to question the validity of any transaction or agreement made by these units with their customers. Public sector UCO Bank's stock saw a slight rise on Friday and closed at Rs 51.02. During the trading session, the stock reached a high level of Rs 51.69. During this period, the stock also touched a low level of Rs 50.80. 

The stock came down after reaching Rs 70.66

Talking about the 52-week high level of the stock, the stock had reached Rs 70.66 on 8 February 2024. Similarly, on 1 September 2023, the stock was at the level of Rs 30.35, which is its 52-week low level. In the June quarter, UCO Bank's net profit increased by 147 percent year-on-year to Rs 551 crore. The bank's profit in the same quarter last year was Rs 223 crore. On an annual basis, the total turnover of the bank increased by 11.46 percent to Rs 4,61,408 crore.

In the first quarter of the financial year 2024-25, April-June, the deposits increased on an annual basis to Rs 2,68,155 crore. During this period, the bank's NPA also declined and it fell by 1.16 percent to 3.32 percent. Apart from this, net NPA decreased by 0.40 percent to 0.78 percent.