Mumbai, June 6
Shares of IndusInd Bank rose as much as 5.3 per cent on Friday, after the Reserve Bank of India (RBI) said the problems at the private sector lender are likely to settle soon.
However, the stock later gave up some of its early gains. During mid-day trade, around 1:45 pm, IndusInd Bank shares were seen consolidating and were trading at Rs 827.85, up by Rs 24.65 or 3.07 per cent on the National Stock Exchange (NSE).
The bank had been facing scrutiny due to past accounting issues.
RBI Deputy Governor J Swaminathan said that things should return to normal at IndusInd Bank soon.
This reassurance came as a relief to investors and pushed the stock higher, making it one of the top gainers on the Nifty Bank index, which itself rose over 1.5 per cent following an interest rate cut and changes to the cash reserve ratio announced earlier in the day.
RBI Governor Sanjay Malhotra also spoke positively about the bank during a press conference after the central bank’s monetary policy meeting.
He said IndusInd Bank has taken enough steps to fix its accounting practices and is doing well overall. "IndusInd Bank has taken enough steps to improve accounting practices. The bank is doing well on the whole," said the RBI Governor.