IndusInd Bank has strong governance and well-capitalised financial credentials

IndusInd Bank has strong governance and well-capitalised financial credentials

According to the last quarter filings, the IndusInd Bank has the second-lowest Gross NPA in the industry among large private-sector lenders. It was at 2.18 per cent.

To dispel rumours about individual exposures, IndusInd Bank issued a statement reiterating its strong governance and well-capitalised financial credentials.

The Bank’s stocks witnessed high levels of speculations when rumours about a pledge regarding 23.8 mn shares of the Bank started doing the rounds.

The Bank’s promoters have sought Reserve Bank of India’s approval to increase their shareholding to 26 per cent. Meanwhile, IndusInd Bank is also working at reducing its Net NPA of 1.05 per cent (as reported last quarter) to fall below 01 per cent. This will take their provision cover beyond 60 per cent.

The Bank has clarified that there have been no new borrowings. It also cleared the air around the Bank’s telecom sector exposure. Stakeholders were reassured that the Bank was in good financial health. It was restated that relief measures for the sector were in the process of approval and that such positive steps must be acknowledged.   

IndusInd Bank makes full disclosure of its loan book profile for every quarter. So, any unsubstantiated claims or mischievous rumours must not be believed.

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