You are here: Home » Finance » News » Banks
Business Standard

IndusInd Bank says it is financially strong amid speculation around 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

Topics
IndusInd Bank | Markets

IANS  |  Mumbai 

IndusInd Bank
IndusInd Bank

Lender 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."

 

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, March 18 2020. 08:25 IST
RECOMMENDED FOR YOU
.