ICICI Bank Faces Roughly $1M Penalty Over Regulatory Non-Compliance

ICICI Bank IBN has been charged a monetary penalty of INR7.5 million ($85,479) by the Reserve Bank of India (“RBI”) for non-compliance with regulatory requirements.The penalty was imposed on the bank for not complying with certain RBI guidelines related to the “Valuation of Properties - Empanelment of Valuers” and the “Opening of Current Accounts by Banks – Need for Discipline.”Details of ICICI Bank’s Regulatory FinesThe penalty has been levied following a Statutory Inspection for Supervisory Evaluation (ISE 2024) conducted by the RBI, assessing IBN’s financial position as of March 31, 2024. According to the RBI, the inspection revealed instances where ICICI Bank did not comply with certain regulatory directives, leading to a notice asking it to explain why a penalty should not be imposed. After evaluation of the bank’s response to the notice, additional submission and oral arguments presented during a personal hearing, the RBI determined that the following breaches warranted the financial penalty.IBN failed to conduct independent property valuations for certain mortgage loans. Also, it opened and maintained certain current accounts that didn’t comply with applicable regulatory standards.The RBI stated that the penalty is solely based on the identified compliance shortcomings and does not comment on the validity of any transactions or agreements between the bank and its clients. It clarified further that this action does not prevent the RBI from pursuing additional actions against ICICI Bank in the future.This follows a penalty of INR97.8 lakhs imposed by the RBI in May 2025 for non-compliance with certain directives related to “Cyber Security Framework in Banks”, “Know Your Customer (KYC)”, and “Credit Card and Debit Card -Issuance and Conduct.”ICICI’s Price Performance & Zacks RankOver the past six months, IBN’s shares have gained 12.2% compared with the industry’s 22.3% rise.Image Source: Zacks Investment ResearchIBN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Litigations/Probes Faced by Other Finance FirmsEarlier this month, UBS Group AG UBS agreed to pay $300 million to the United States Department of Justice (DOJ) to resolve a legacy matter related to the mis-selling of mortgage-linked investments by Credit Suisse in the United States.On Aug. 1, 2025, UBS-owned Credit Suisse Securities (USA) LLC agreed to settle all Credit Suisse’s outstanding consumer relief obligations under the 2017 settlement for its residential mortgage-backed securities business.Similarly, last month, CNBC reported that Robinhood Markets, Inc. HOOD is under investigation by Lithuania's central bank, its lead regulator in the European Union (EU), regarding its newly launched tokenized equity products.The scrutiny follows Robinhood’s recent launch of its Stock Tokens product across the EU, aimed at offering blockchain-based tokenized access to shares, including those of private firms. The offering sparked immediate questions from OpenAI, which openly distanced itself from HOOD’s product.Robinhood defended the tokens by highlighting that they are backed by ownership interests designed to provide investors with indirect exposure to private markets. Nonetheless, regulators remain wary, specifically regarding the transparency and legality of how these digital instruments are offered to retail investors.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UBS Group AG (UBS): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks