Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of more than Rs 1.66 lakh on Union Bank of India over discrepancies observed in soiled note remittance, the bank said on Saturday. 

In a stock exchange filing, Union Bank of India said “In compliance with Regulation 30(4) read with Schedule III, Part A Clause 20 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that the Reserve Bank of India has imposed a penalty of Rs 1,66,868.84 (Rupees one lakh sixty-six thousand eight hundred sixty-eight and eighty-four paise only)”.

This is because of the discrepancies observed in the bank's “soiled note remittance to RBI and ATM cash out”, according to the exchange filing.

According to the bank, the impact on financial, operation or other activities of the bank is not significant. 

The bank has taken necessary preventive measures to avoid recurrences of such instances, it said.

For the quarter ended March, Union Bank of India's net profit jumped 50.6 per cent on year to Rs 4,985 crore.

Net interest income rose 1 per cent to Rs 9,514 crore versus Rs 9,437 crore last year. 

Consequently, net interest margin was at 2.87 per cent for the quarter ended March from 2.91 per cent a quarter ago.

Union Bank's asset quality saw improvement from the previous quarter, with Gross NPA at 3.6 per cent from 3.85 per cent in the December quarter, while net NPA stood at 0.82 per cent from 0.63 per cent compared to the December quarter.

The bank’s board has recommended a dividend of Rs 4.75 per equity share of Rs 10 each for the financial year 2024-25. 

The payment of dividends is subject to obtaining the necessary statutory approvals and the approval of the shareholders of the bank at the 23rd Annual General Meeting (AGM). (IANS)