After RBI's assurance, IndusInd Bank's shares regain momentum!
After the assurance given to the customers and shareholders of IndusInd bank by the banking sector regulator Reserve bank of India, the shares of IndusInd bank have seen a strong rise in Monday's session. Due to the return of buying in the bank's stock, the stock rose by 5.58 percent to the level of Rs 709.90. Last week, as soon as the news came that the bank has suffered a loss of around Rs 2000 crore in its derivatives portfolio, IndusInd Bank's shares fell by more than 30 percent.
On Saturday, march 15, RBI assured the customers of IndusInd bank that the bank has sufficient capital. Addressing the concerns of the customers, RBI said that there is no need for depositors to react to speculation at this time. RBI said in a statement that based on publicly available disclosures, the bank has already appointed an external audit team to conduct a comprehensive review of its existing mechanism and assess and calculate the actual impact. The central bank assured customers and investors that the financial position of the bank remains stable and it is closely monitoring it.
IndusInd bank said in a regulatory filing with the stock exchange last week that during the internal review of the derivatives portfolio, irregularities have been found in the account balance, due to which the bank has found a loss of 2.35 percent in its net worth. Due to this, the bank's profits can be affected. According to an estimate, due to this the net worth of the bank may decrease by Rs 2100 crore. And the bank can adjust this loss in the profit in the fourth quarter of the current financial year or in the first quarter results of FY 2025-26.
Earlier, after reports of losses in Indusind Bank's derivatives portfolio surdata-faced, brokerage houses have reduced the target price of the stock. Nuvama Institutional Equities has reduced the target price of this stock, included in the BSE Sensex 30, to Rs 750. However, after the assurance from RBI, the stock has recovered.
