We are financially strong and well-capitalised: IndusInd Bank

Private sector lender IndusInd Bank has said it is financially strong, well-capitalised and profitable, amid market rumours about the health of the lender after the Yes Bank crisis came to light.

"In the wake of the significantly higher level of market rumours and speculation around IndusInd Bank stock, we would like to reiterate that the Bank is financially strong, well-capitalised, profitable, and a growing entity with a strong governance," it said in a late night statement on Tuesday.

The bank's stock ended nearly 9 per cent down at Rs 604.30 on the BSE on Tuesday.

The lender said gross non-performing assets (NPAs) in December quarter 2019 stood at 2.18 per cent which was lowest among large private sector banks.

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

Citing reports on relief measures to the telecom sector, IndusInd Bank said this is a significant positive step and the bank awaits further details on the matter.

The bank noted that its latest gross NPA figure as at the end of February 2020 was zero with respect to real estate developer (commercial & residential); gems and jewellery financing.

Commercial vehicle and microfinance portfolios remain steady and range-bound, it added.

"Market rumours about individual exposures doing the rounds are bloated and outlandish and nowhere near the truth. The bank makes full disclosures every quarter on its loan book profile."