IndusInd Bank says it is financially strong amid speculation around stock

Lender IndusInd Bank on Wednesday reiterated that it is "financially strong, well-capitalised, profitable, and a growing entity with strong governance".

The bank's statement comes in the wake of significantly higher level of speculation around its stock.

On Wednesday, the bank's stock on the BSE fell by Rs. 61.10 or 9.20 per cent to close at Rs. 603.05 from its previous close.

"Market rumours about individual exposures doing the rounds are bloated and outlandish and nowhere near the truth," the lender said in a statement.

"The Bank makes full disclosures every quarter on its loan book profile."

According to the bank, in the last quarter its Gross NPA stood at 2.18 per cent which was the second lowest in the industry amongst large private sector lenders.

"We expect current quarter Gross NPA to be pretty much in line with that of last quarter," the statement said.

"We expect our Net NPA of 1.05 per cent as at the last quarter to fall below 1 per cent, in line with our ambition to take provision cover beyond 60 per cent."

As per the statement, the bank's promoter has sought RBI approval to increase shareholding to 26 per cent.

"Promoter has already informed the exchange about the simultaneous release of non- disposal undertaking with the creation of a pledge in relation to 23.8mn shares of the Bank," the statement added.

"No new borrowing was undertaken and was merely a formalisation of a three year old arrangement. The money was originally raised to make an overseas acquisition which did not fructify - the pledge is a small fraction of Promoter holding in the Bank."