IndusInd bank News

The private lender had suffered a dent in investor confidence after the recent Rs 2,000 crore accounting lapse.

The Mumbai-based private lender reported a net loss of Rs 2,328 crore for the January-March period as accounting issues and stress in the microfinance portfolio led to the balance sheet taking a hit.

The move comes in response to the Reserve Bank of India’s (RBI) directive, which asked the bank to submit its CEO recommendations by June 30.

On Thursday, the banks’ shares were trading at Rs 813.95 apiece, up Rs 8.80 or 1.09 per cent.

On Friday, the markets ended mixed. While large-cap stocks saw some profit booking, buying continued in the mid and small-cap segments.

The move comes after a series of recent developments at the bank that have raised concerns about its internal controls and management stability.

The move comes after IndusInd Bank’s Managing Director and CEO Sumant Kathpalia resigned from his post in connections with the derivatives accounting lapse that has eroded the private sector bank's net worth.

The development comes a day after Deputy CEO Arun Khurana quit after accounting discrepancies were unearthed in the bank's derivatives portfolio by an independent audit.

The stock declined as much as 5.12 per cent to close at Rs 635.15 apiece on the National Stock Exchange (NSE).

The bank’s net worth is expected to decline by nearly Rs 2,100 crore after accounting discrepancies of 2.35 per cent of its net worth were found in its derivatives portfolio during an internal review.

The shares of IndusInd bank surged more than 2.67 per cent after the bank received approval from the Reserve Bank of India (RBI) to establish a wholly-owned subsidiary for undertaking the asset management business of Mutual Funds, the bank informed the exchange in a filing.

Rising for the second day, the 30-share BSE Sensex jumped 539.50 points or 0.75 per cent to settle at 72,641.19. 

The interest rates on a fixed deposit (FD) remain constant from the time the FD account is initiated, unlike market-driven investments where returns fluctuate over time.

HDFC Bank said that the RBI’s approval is valid for a period of one year from the date of RBI’s letter, i.e., till February 4, 2025. 

CCI has approves acquisition of  control/stake in Reliance Capital Limited by IndusInd International Holdings Limited, IIHL BFSI (India) Limited, and Aasia Enterprises LLP.  

RBI's three-day bi-monthly monetary policy committee (MPC) meeting started on October 4 amidst market speculations that the central bank might pause key interest rates this time too.

Shivalik Small Finance Bank's new FD rates came into effect from September 19 IndusInd Bank and City Union Bank revised their FD rates w.e.f September 23 FDs are one of the safest investment avenues, senior citizens and investors with zero risk appetite prefer to park their money in them

 Fixed deposits are the most popular option for investors with a zero risk tolerance profile who want to invest to build wealth without relying on market returns.

RBI has also imposed penalties on four co-operative banks. A penalty of Rs 1.05 crore has been imposed on Kotak Mahindra Bank. RBI said a penalty of Rs 1 crore has been imposed on IndusInd Bank for non-compliance with KYC.

On a 5-year tenor or deposit period, senior folks can earn up to 7% interest in Mumbai-based IndusInd Bank. IndusInd provides older folks 7% interest on savings under Rs 2 crore. On deposits of less than Rs 2 crore for a period of 61 months or more, the bank offers 6.50 percent to senior folks.