Cobrapost fallout: Indian Bank suspends employee

State-owned Indian Bank on Thursday said it has suspended an official who is accused of wrong doings by an online portal in an expose.

The bank has also initiated the exercise to bring all operative accounts with it under KYC norms.

Indian Bank Chairman and Managing Director T M Bhasin said the bank has placed under suspension R Manohar, Assistant General Manager at the South-Delhi branch, for giving "hollow" advices to public.

"I got the information about 11.30 am on that day and immediately I went through the entire Webcast. He has given 'hollow' advices...by hollow advices he has given wrong information. And since he has given such wrong advices, we took a call on suspending him," Bhasin said.

Online portal Cobrapost in its second expose on Monday had accused 23 public and private sector banks and insurance companies, including Indian Bank, besides SBI and LIC of "running a nation-wide money laundering racket".

The expose had prompted the Union Finance Ministry and IRDA to initiate independent investigations into the matter. The Cobrapost expose, Bhasin further said, was also discussed during the board meeting.

"We have gone through it. In fact, in our board meeting held today, we had a detailed discussion about this matter. It is (a case of) jumping the gun by the concerned manager of the bank," Bhasin said.

Indian Bank has begun the exercise of making all its "operative" accounts KYC (Know Your Customer) compliant, he said, adding a circular in this regard was being issued.

According to Bhasin, 98 per cent of accounts are under KYC norms at present, and by June 30, 2013, efforts would be made to make it 100 per cent.

"We have also offered online trading platform (to customers) and the managers have been educated to train the employees," he said.