Staff caught on camera offering money-laundering solutions in Cobrapost sting; ICICI, HDFC Bank and Axis Bank initiate inquiries; FM steps in to stem panic
Online media firm Cobrapost today alleged managers of the country’s top-three private banks by market capitalisation — ICICI Bank, HDFC Bank and Axis Bank — had been offering ‘money laundering’ as products to people looking to park black money.
Also read: How to launder money and live happily ever after
“They are offering it as a product — one without brochure,” saidCobrapost Founder & Chief Editor Aniruddha Bahal.
Even as Bahal was unveiling a 150-minute documentary film of sorts, based on the multi-centre covert investigation that used spy-cams, stocks of the three banks were slipping into the red — falling by up to two per cent each.
However, with banks swiftly offering statements announcing internal investigations, the market shed its fears and lifted the stocks. HDFC Bank gained 2.28 per cent over its previous close to end the day at Rs 649.60, while ICICI Bank gained 2.29 per cent to Rs 1,110.75 and Axis Bank 0.5 per cent to Rs 1,354.25.
Later in the day, Finance Minister P Chidambaram said he’d spoken to chiefs of two of the three banks and had assured the allegations were not correct.
Reserve Bank of India (RBI) Deputy Governor Urjit Patel said the banks had been asked to provide details, but denied that any showcause notice had been sent.
The Cobrapost film, titled ‘Operation Red Spider’, showed several mid-level staffers, such as relationship managers, branch managers and territory managers, offering to convert black money worth crores of rupees into white. Some even offered to deliver handsome returns, “all in white”. One of the most common methods offered by the staff across banks at different centres around the country, such as Faridabad, Delhi, Vellore and Hyderabad, was to invest the money in long-term insurance products. The managers usually offered insurance products of sister concerns, such as HDFC Life, ICICI Prudential Life Insurance, etc.
More at: http://www.business-standard.com/article/finance/top-banks-come-under-black-money-cloud-113031400618_1.html
Online media firm Cobrapost today alleged managers of the country’s top-three private banks by market capitalisation — ICICI Bank, HDFC Bank and Axis Bank — had been offering ‘money laundering’ as products to people looking to park black money.
Also read: How to launder money and live happily ever after
“They are offering it as a product — one without brochure,” saidCobrapost Founder & Chief Editor Aniruddha Bahal.
Even as Bahal was unveiling a 150-minute documentary film of sorts, based on the multi-centre covert investigation that used spy-cams, stocks of the three banks were slipping into the red — falling by up to two per cent each.
However, with banks swiftly offering statements announcing internal investigations, the market shed its fears and lifted the stocks. HDFC Bank gained 2.28 per cent over its previous close to end the day at Rs 649.60, while ICICI Bank gained 2.29 per cent to Rs 1,110.75 and Axis Bank 0.5 per cent to Rs 1,354.25.
Later in the day, Finance Minister P Chidambaram said he’d spoken to chiefs of two of the three banks and had assured the allegations were not correct.
Reserve Bank of India (RBI) Deputy Governor Urjit Patel said the banks had been asked to provide details, but denied that any showcause notice had been sent.
The Cobrapost film, titled ‘Operation Red Spider’, showed several mid-level staffers, such as relationship managers, branch managers and territory managers, offering to convert black money worth crores of rupees into white. Some even offered to deliver handsome returns, “all in white”. One of the most common methods offered by the staff across banks at different centres around the country, such as Faridabad, Delhi, Vellore and Hyderabad, was to invest the money in long-term insurance products. The managers usually offered insurance products of sister concerns, such as HDFC Life, ICICI Prudential Life Insurance, etc.
More at: http://www.business-standard.com/article/finance/top-banks-come-under-black-money-cloud-113031400618_1.html
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