IndusInd Bank Ltd.'s share price rose Friday after Reserve Bank of India Deputy Governor Swaminathan J said issues surrounding the lender will "settle down very soon".
No systematic impact is rising from the IndusInd Bank issue. The priority is not to cause issues to the customers. RBI will keep mentoring the banking system, he said.
Governor Sanjay Malhotra said that the central bank will step in if it needs to carry out its duty. He asked people not to be speculative about fraud in IndusInd Bank and let the law takes its course.
IndusInd Bank on May 15 reported a new discrepancy, which showed that Rs 674 crore was "incorrectly recorded as interest" over three quarters of fiscal 2025. This followed the private lender's first disclosure on March 10 that it had noticed irregularities in its derivative portfolio, which would result in financial impact of 2.35% of net worth as of Dec. 31, 2024.
IndusInd Bank Share Price
IndusInd Bank share price rose 4.91% to Rs 842.65 apiece, the highest level since May 12. The share price was trading 4.89% higher at Rs 842.25 apiece as of 1:10 p.m., as compared to a 0.89% advance in the NSE Nifty 50.
The stock declined 43.12% in 12 months, and 12.24% on year to date basis. Total traded volume so far in the day stood at 0.7 times its 30-day average. The relative strength index was at 60.57.
Out of 46 analysts tracking the company, nine maintain a 'buy' rating, 15 recommend a 'hold' and 22 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 11.2%.
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