Amid its shares tumbling in the stock market, IndusInd Bank on Wednesday reiterated that it is a "financially strong, well-capitalised, profitable, and a growing entity with strong governance." The bank's statement comes in the wake of significantly higher level of speculation around its stock.
On Wednesday, shares of IndusInd Bank plunged 36.7 per cent intraday to hit a six-year low of Rs 382.55 amid weak market conditions. It was the top loser in the Sensex pack.
"Market rumours about individual exposures doing the rounds are bloated and outlandish and nowhere near the truth. The bank makes full disclosures every quarter on its loan book profile," IndusInd Bank said in a statement. It further went on to list down various factors including loan book quality and liquidity at the bank to substantiate its statement.
It said that in the last quarter, the bank’s gross NPA, at 2.18 per cent, was the second lowest in the industry among large private sector banks and sounded confident of improving the same. "We expect our net NPA of 1.05 per cent as at the last quarter to fall below 1 per cent, in line with our ambition to take provision cover beyond 60 per cent," the lender stated. The bank maintains a liquidity well above 100 per cent, going up to 120 per cent on a daily basis.
IndusInd Bank has a total of 1,851 branches and banking outlets and 2,721 ATMs across India. As per the statement, the bank's promoter has sought RBI approval to increase shareholding to 26 per cent. "Promoter has already informed the exchange about the simultaneous release of non- disposal undertaking with the creation of a pledge in relation to 23.8 mn shares of the bank," the statement added.
