According to RBI inspection, the Axis Bank failed to preserve records pertaining to the identification of customers and their address in certain cases, the bank made persistent calls to some of the customers, it has failed to ensure appropriate behaviour of recovery agents with some of the delinquent borrowers and it also failed to ensure a tape recording of the content/text of the calls made by the recovery agents to some of the customers and bank did not obtain declarations from the customer at the time of opening of current accounts.

Further, RBI imposed a penalty of Rs 42.78 lakh on Manappuram Finance for non-compliance with certain provisions of the “Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016”.

According to the apex bank's inspection, the company has failed to comply with the RBI’s directions on payment to certain borrowers the surplus amounts realised by auction of gold articles pledged by those borrowers during the period from 1 April 2021 to 30 September 2022.

Axis Bank is the third-largest private sector bank in India. As on 30 September 2023, the bank had a network of 4,760 domestic branches, extension counters situated in 2,676 centres and 15,806 ATMs and cash recyclers spread across the country. The bank's Axis Virtual Centre is present across six centres with over 1,500 virtual relationship managers as on 30 September 2023.

Manappuram Finance is a Non-Banking Finance Company (‘NBFC’), which provides a wide range of fund based and fee based services including gold loans, money exchange facilities, etc. The Company is a Systemically Important Non-Deposit taking NBFC(NBFC-ND). The Company is registered with the Reserve Bank of India (RBI).

Shares of Axis Bank slipped 3.09 % to settle at Rs 993.95, Manappuram Finance fell 3.34% to close at Rs 155.05.