IndusInd Bank shares witnessed a sharp rebound in early trade on Monday, surging nearly 7% to touch an intraday high of ₹707.75 on the Bombay Stock Exchange (BSE). As of 9:45 AM, the stock was up 4.59% at ₹702.95, following a strong reassurance from the Reserve Bank of India (RBI) over the weekend regarding the bank’s financial stability.
RBI’s Reassurance Sparks Recovery
The recovery comes after a turbulent week for IndusInd Bank, during which its stock plunged 27% in a single session, marking its steepest decline ever due to concerns over an accounting discrepancy in its derivatives portfolio.
In its latest statement, the RBI assured investors that IndusInd Bank remains well-capitalized and financially stable. The central bank revealed key financial metrics for the lender:
- Capital Adequacy Ratio (CAR): 16.46% (as of Q3 FY24)
- Provision Coverage Ratio (PCR): 70.2%
- Liquidity Coverage Ratio (LCR): 113% (March 9) — well above the 100% regulatory requirement
IndusInd Bank Under Close Monitoring
To address the derivatives portfolio concerns, the RBI confirmed that IndusInd Bank has engaged an external audit team to conduct a comprehensive review. The bank’s board and management have been directed to complete all remedial actions within the current quarter.
F&O Ban Still in Place
Despite the recovery, IndusInd Bank remains under the Futures and Options (F&O) ban, restricting the creation of new derivative positions. Market watchers are now keenly following further regulatory updates, audit findings, and management decisions to assess the bank’s financial course.
Investor Confidence Returns
The RBI’s reassurance appears to have calmed market nerves, leading to renewed investor confidence in IndusInd Bank. However, analysts suggest that short-term volatility may persist until further clarity emerges on the audit outcomes and corrective measures undertaken by the lender.
