IT Dept raids Kotak Bank's KG Marg branch over fake account reports

The Income Tax Department on Friday raided Kotak Bank's KG Marg branch in connection with survey on 2 of its customers and related accounts.

New Delhi: The Income Tax Department on Friday raided Kotak Mahindra Bank's KG Marg branch in connection with survey on 2 of its customers and related accounts however bank has denied that there were any fake accounts

“No adverse report has been submitted to bank so far. Bank has denied that there were any fake accounts and are  extending full co-operation to investigating agencies,” Rohit Rao, Kotak Mahindra Bank Spokesperson said.

"No KYC (Know Your Customer) deficiencies were noted in these two customers. The income tax department did question the branch manager and no adverse report has been submitted to the bank so far," Rao added,

It was earlier reported that fake accounts worth Rs.70 crore were found in the bank`s Kasturba Gandhi Marg branch in New Delhi. The "suspect" accounts were in the name of Ramesh Chand and Raj Kumar.

Yesterday, shares of banking firms fell with with the bank indices hitting nearly a six-month low in the backdrop of ongoing series of investigations in various banks by the investigative agencies. Analysts say that the move has dampened the sentiments of investors.