RBI Penalizes ICICI Bank for Regulatory Non-Compliance

ICICI Bank has been penalized by the RBI for regulatory non-compliance, including failing to conduct property valuations by independent valuers and maintaining current accounts against regulatory requirements. The penalty is ₹75 lakhs and highlights compliance challenges for the bank. Analysts rate ICICI Bank stock as a Buy with a $36.00 price target.

ICICI Bank has been penalized by the Reserve Bank of India (RBI) for regulatory non-compliance, including failing to conduct property valuations by independent valuers and maintaining current accounts that did not comply with regulatory standards. The penalty amounts to ₹75 lakhs ($85,479) [1].

The penalty was imposed following a Statutory Inspection for Supervisory Evaluation (ISE 2024) conducted by the RBI, which assessed ICICI Bank's financial position as of March 31, 2024. The inspection revealed instances of non-compliance with specific RBI guidelines related to the "Valuation of Properties - Empanelment of Valuers" and the "Opening of Current Accounts by Banks – Need for Discipline" [2].

According to the RBI, ICICI Bank failed to obtain property valuations from independent valuers for certain mortgage loans and maintained current accounts that violated existing regulatory standards. The bank was given a notice to explain why a penalty should not be imposed, but the RBI concluded that these breaches warranted a financial penalty [3].

This penalty follows a previous fine of INR97.8 lakhs imposed by the RBI in May 2025 for non-compliance with directives related to "Cyber Security Framework in Banks," "Know Your Customer (KYC)," and "Credit Card and Debit Card -Issuance and Conduct" [4].

Despite the penalty, analysts rate ICICI Bank stock as a "Buy" with a price target of $36.00, indicating a positive outlook on the bank's future performance [5].

References:
[1] https://finance.yahoo.com/news/icici-bank-faces-roughly-1m-152800339.html
[2] https://finance.yahoo.com/news/indian-central-bank-fines-icici-114445380.html
[3] https://www.retailbankerinternational.com/news/indian-central-bank-fines-icici-bank/
[4] https://www.nasdaq.com/articles/icici-bank-faces-roughly-1m-penalty-over-regulatory-non-compliance
[5] Image Source: Zacks Investment Research