India’s largest bank says it is shutting down

By K.V. Krishna, ET BusinessLineIndia’s largest banking group has decided to close its Mumbai branch and its office in the country’s largest financial hub.

The decision was made after an internal investigation into allegations of money laundering by two employees of the group’s parent company, Axis Bank, according to a statement by Axis Bank.

The bank said it will have to close all its offices and that all its employees will be shifted to other jobs.

The statement did not specify what other actions the group will take.

The news came just two days after Prime Minister Narendra Modi announced a crackdown on money laundering and the imposition of capital controls across India, after he won a landslide election victory in November.

The crackdown, which has been criticized by some quarters, has led to a sharp drop in India’s inflation rate, and also has contributed to a rise in the economy.

In November, the RBI said it had found evidence of $1.1 billion in unaccounted cash being transferred through Axis Bank branches across India.

The bank said the investigation was ongoing.