Mumbai, Sept 2: ICICI Bank has suspended five officials from its treasury department for overstepping their limits while trading.

Three dealers and two officials from the back office were suspended by the country's largest private sector bank for their misdeeds that resulted in a loss of Rs 1 crore to the bank.

ICICI Bank officials revealed that the suspension came into effect in early August.

The three dealers were from the forex dealing room. The forex dealers in India, unlike their counterparts in the stock markets, deal virtually over telephones.

ICICI Bank officials said the misdemeanours were spotted in the early part of August and the suspension orders were served on August 8. The two officials manning the back office were suspended for negligence in not reporting the overshooting of trading limits.

ICICI Bank has one of the busiest dealing desks among banks with its trading turnover second only to the State Bank of India, the largest public sector commercial bank in the country.

It's traded turnover in the forex and bond market average around Rs 3000 crore, say dealers.

The private sector bank is known for its aggressive manner in doing business and it has set individual limits for its dealers depending on the basis of their experience and trading skills.

ICICI Bank officials revealed that the Reserve Bank of India, the apex regulator for banks, has been informed on the developments at every step.

While the misdemeanour this time was small compared with its scale of business, sources say the bank wants to convey its seriousness on the limits.

The bank has set up an internal committee to go through the checks and balances and risk containment measures to prevent such practices in the future.

With derivatives trading taking off in the country in a big way, it has become very important for banks to ensure that safety mechanisms work.