IndusInd Bank shares rise 4% post-RBI officials' comments on the lender

IndusInd Bank shares rise 3% post-RBI officials' comments on the lender

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26 Aug, 2025 12:21

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IndusInd Bank Ltd's shares rose over 4% on June 6 post-RBI officials' comments on the lender's recent troubles, including accounting lapses.

"IndusInd Bank has taken enough steps to improve accounting practices. The bank is doing well on the whole," said Reserve Bank of India Governor Sanjay Malhotra at the post-monetary policy press conference in Mumbai.

"IndusInd MD, CEO has resigned, that should be good enough. Law will take its course on IndusInd fraud. Won't fail in our duty if we have to step in," added Malhotra.

RBI deputy governor J Swaminathan said, "On IndusInd, the issue should settle down very soon. We will keep monitoring banking system and see no systemic impact arising from IndusInd Bank issue."

At 1 pm on June 6, IndusInd Bank shares were trading 4.2% higher at Rs 837.2 apiece.

"Normally we do not comment on individual banks. Let us not be speculative on IndusInd Bank fraud," added Malhotra.

IndusInd Bank is currently going through a troubled phase with forensic audit underway. In March this year, it declared a hit of Rs 2,000 crore to its net worth owing to lapses in derivatives accounting. Subsequently, more accounting irregularities have been uncovered at the bank and it is in the process of appointing a new leadership team including a new chief executive officer.

Last month, market regulator SEBI restrained former IndusInd Bank CEO, deputy CEO and three others from trading in securities until further orders over alleged insider trading.

These officials sold shares of the bank when they knew of accounting discrepancies, which was an unpublished price sensitive information, the Securities and Exchange Board of India said in its interim order.

By selling shares before the information was public, they avoided Rs 19.78 crore in losses, it said, with a majority of that coming from CEO Sumant Kathpalia and his deputy Arun Khurana.

Its senior management was aware of accounting discrepancies since at least December 2023 and had internally acknowledged its "huge impact", the regulator said in its preliminary findings, citing emails.