ICICI Bank has sacked one of its dealers who had entered into improper forward trades by executing deals to favour four Kolkata-based Top 20 Global Fin Brands 19 Indian banks in Top 500 Global Financial Brands corporates.
These companies could buy or sell currency at exchange rates which were more attractive than what they would have been offered in the regular course of business.
The employee had struck deals by ensuring that the corporates received favourable rates by tinkering with the last two digits in the forex rates, which is typically as 46.4534 or 28.6751. The software did not throw up an alert when these transactions happened since the first four digits were not changed. The deals were done in Japanese Yen, Euro and dollars.
A senior bank official said the bank got suspicious when it spotted that the dealer, who was a relationship manager for the global market division in Mumbai, was carrying out trades for a bunch of Kolkata corporates. This never happens unless the company concerned is very big.
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