ICICI Bank,Axis Bank,HDFC Bank shares slump on Cobrapost sting

Shares of three banks ICICI Bank,Axis Bank and HDFC Bank today ended with losses

Written by PTI | Mumbai | Published: March 15, 2013 8:29:17 pm

Shares of three private sector banks ICICI Bank,Axis Bank and HDFC Bank today ended with losses in the range of 1-4 per cent,following accusations that the lenders have indulged in money laundering.

After falling nearly 5 per cent during the day,shares of ICICI Bank finally ended at Rs 1,067.15,down 3.93 per cent from the previous close on the BSE.

Similarly,Axis Bank closed with a loss of 0.90 per cent at Rs 1,342,while HDFC Bank was down 1.67 per cent at Rs 638.75.

“Banking stocks like ICICI Bank and HDFC Bank pared their recent gains after news of RBI probing the money-laundering practices in the said banks weakened investor sentiment,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio.

The country’s three largest private banks were yesterday accused of indulging in money laundering both within and outside with an online portal claiming that a sting operation conducted by it has revealed a scam.

The portal Cobrapost played the contents of purported video recording of officials of HDFC Bank,ICICI and Axis Bank allegedly agreeing to receive unverified sums of cash and put them in their investment schemes and benami accounts in violation of anti-money laundering laws.

However,all the three banks have claimed they conduct business in compliance with legal and regulatory requirements of the highest standards but said they will investigate the charges.

The government has said action will be taken against persons found guilty in the alleged money laundering scam.

The Reserve Bank is also collecting information regarding the alleged acts of money laundering by the three private sector banks.

Meanwhile,the BSE 30-stock index,Sensex,closed at 19,427.56,down 142.88 points.

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