IndusInd Bank jumps after issuing clarification

IndusInd Bank jumped 2.76% to Rs 621 on BSE after the bank issued a statement clarifying it is financially strong, well-capitalized, profitable and a growing entity with strong governance.

IndusInd Bank in a regulatory filing cleared rumours and speculations surrounding the bank and reassured shareholders and depositors.

IndusInd Bank issued a statement which said, Various market rumours and speculation incorrectly reflect on the Bank's financial health and are totally misplaced, motivated and not based on facts. Induslnd Bank is committed to all its stakeholders and we would urge all our stakeholders to not believe unsubstantiated information and mischievous rumours. The Bank has also proactively made all business continuity arrangements in light of the Coronavirus so that our services remain uninterrupted, the health of our employees and customers is safeguarded, digital channels are propagated and daily business execution on the ground remains effective.

IndusInd Bank said that its gross NPA (Non Performing Assets) stood at 2.18% which was second lowest in the industry amongst large private sector Banks. The bank expects current quarter gross NPAs to be pretty much in line with that of the last quarter.

The bank also said it expects net NPA of 1.05% of the last quarter to fall below 1%, in line with bank's ambition to take provision cover beyond 60%.

On a sectorial basis, the bank has zero NPAs in Real Estate Developing segment (Commercial& Residential) book. The bank also has zero NPAs in Gems and Jewellery financing portfolio. NPAs in Commercial Vehicle and Microfinance portfolios remain steady and range-bound.

The private sector bank clarified that market rumours about individual exposures doing the rounds are bloated and outlandish and nowhere near the truth.

The bank said the promoter has sought RBI approval to increase shareholding to 26% and they await further guidance from the Regulator. Promoter has also informed the exchange about the simultaneous release of nondisposal undertaking with the creation of a pledge in relation to 23.8m shares of the Bank.

Lastly, the bank reassured that it maintains liquidity well above 100% going up to 120% on a dally basis. The bank said, Banking with other banks and counterparties is business as usual.

IndusInd Bank is engaged in banking and para-banking services. The bank is involved in accepting deposits, such as savings accounts, current accounts and fixed deposits, and banking solutions.

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