MUMBAI Dec 12 India's Axis Bank on
Monday slammed a regional newspaper report stating authorities
were preparing to revoke the bank's licence as "false and
malafide", saying it had strong systems and controls in place as
per central bank rules.
Axis, India's third-biggest private sector bank, said last
week it had suspended some 19 employees over alleged breaches at
one of its branches in implementing a government-ordered
exchange of high-value bank notes.
The statement by Axis was in response to a report on
Saturday in local Hindi daily Dopahar that suggested the bank
could lose its licence over alleged money laundering activities
involving the suspended employees.
"We firmly believe that said news is intended to spread
panic amongst the general public, demoralise the staff and
damage the reputation of the bank," the lender said in a stock
Shares in Axis Bank were down 2.5 percent at 445 rupees a
share in afternoon trading on the National Stock Exchange.
(Reporting by Devidutta Tripathy; Editing by Euan Rocha and Tom