Axis Bank, one of the leading importers of gold and silver in India, was pulled out from the list of bullion importers released by RBI for the current fiscal year 2018-19. Apart from that, two more small banks were also removed from the list – Karur Vysya and South Indian Bank.
Neither the Reserve Bank of India nor Axis Bank has revealed anything about the reason for exclusion as yet. Due to this, the bank’s stock fell to a low of 493.10 in the market. There are 16 banks which are included in the list that covers Bank of Baroda, HDFC Bank and Bank of Nova Scotia. According to a few bullion dealers, this decision of RBI could shore up share prices of other competent bullion importers like Kotak Mahindra Bank, HDFC Bank, Bank of Nova Scotia and Yes Bank.
Recently, Axis Bank was slapped with a fine by RBI for non-compliance with the revised NPA norms. Moreover, some senior level executives were asked to resign over irregularities, while the bank also recently had a legal dispute with the Telecom department.