IndusInd Bank shares rebound sharply after CEO says confident of profit in Q4

IndusInd Bank shares jump 14% from day's low after management gives clarity on derivative losses

IndusInd Bank share price jumped nearly 14 percent from the day's low in Wednesday's trading session after the bank promoter Ashok Hinduja assured that the lender's financials remain healthy, and it will be fully supported should any capital requirement arise.

Shares of the Mumbai-headquartered Indusind Bank Ltd snapped the five-day losing streak to rise to Rs 690 per share on the NSE, a jump of 13.86 percent from its intraday low of Rs 606 apiece.

Stock of the Nifty 50 constituent has been on a downward trend since March 5, but the sell-off intensified since March 10 (Monday). Its's current market valuation stood at Rs 53,322.31 crore, after briefly going below than Yes Bank's market cap in Tuesday's trade.

Shares of one of India's largest private lenders crashed 26 percent on Tuesday after the bank reported discrepancies in its derivatives portfolio, resulting in an estimated impact of 2.35 percent on the net worth of the bank. Ashok Hinduja told CNBC-TV18 that the bank can take care of the discrepancies that have emerged.

"Shareholders shouldn't panic. These are normal routine problems. I understand their concern is over why they were not informed earlier. Banking businesses are based on integrity and trust," he said.

IndusInd Bank promoter Ashok Hinduja assures support, 'ready to inject capital' if required

Its CEO Sumant Kathpalia said the bank is likely to absorb the losses in the ongoing quarter itself. "The full year won't be a loss at all. And I think Q4 will also be in profit...The bank will start seeing great profitability from Q1," he said while speaking to CNBC-TV18.

Meanwhile, the Reserve Bank of India (RBI) has contacted several large banks to verify their hedging effectiveness and positions in the forex derivative market, Economic Times said in its report quoting the sources.

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