Axis Bank Ltd.

Axis Bank has appointed top accounting firm KPMG to do a forensic audit, following a sting operation done by Cobra-post that accused bank’s executives of indulging in money laundering activities. Axis' competitors in the private sector lending space, HDFC Bank and ICICI Bank, which were also named in the sting operation, too have appointed external agencies to look into the matter.

Although, Axis bank’s top official prima-facie have denied of any wrong-doing on the bank’s part. Despite this, the bank has taken actions towards this, including transfers and withdrawal of I-cards of 20 employees, pending inquiry.

A Cobrapost pan-India undercover investigation accused HDFC Bank, ICICI Bank and Axis Bank of running a vast, nation-wide money laundering racket. According to Cobrapost, the banks' executives had allegedly shown readiness in accepting unaccounted money into investment products, which point to non-compliance of know your customer (KYC) norms and also indicate a case for money laundering.

Axis Bank’s net profit for the quarter ended March 31, 2013 jumped by 21.75% at Rs 1555.15 crore for the quarter as compared to Rs 1277.27 crore for the quarter ended March 31, 2012. Bank’s total income has increased by 18.39% at Rs 9054.72 crore for the quarter under review as compared to Rs 7647.94 crore for the corresponding quarter of the previous fiscal.