The reconciliation was initiated following instructions from the municipal corporation itself, a bank spokesperson said, adding that a significant portion of the amounts under review had already been reconciled.
“Based on records examined so far, all account opening processes, KYC documentation, authorised signatories and instructions received from the municipal corporation were in order, and the accounts and transactions were handled in strict adherence to due process and applicable banking norms,” according to the spokesperson’s statement.
The bank said it filed a formal complaint with the Panchkula Police-a step it described as consistent with its governance standards and aimed at ensuring the matter is examined comprehensively. It is cooperating fully with the municipal corporation, government authorities and law enforcement agencies, the lender said.
Shares of Kotak Mahindra Bank ended 1.13% higher at ₹371.30 on the BSE Wednesday.
A similar incident had surfaced earlier when IDFC First Bank disclosed a ₹590 crore discrepancy in Haryana government deposits maintained at its Chandigarh branch.
In a stock exchange filing, IDFC First Bank said the issue came to light after a Haryana government department sought closure of its account and transfer of funds to another bank. During that process, discrepancies were found between the balance reflected in the account and the amount the department believed it held.