After a sharp decline on Tuesday, March 12 saw a recovery in IndusInd Bank shares. In early trading, the stock surged 14% from the day’s low. Currently, the stock is up by ₹22, trading at ₹678.35.
IndusInd Bank Shares – Positive Impact of Promoters’ Statement
Latest Update
Following a statement by bank promoter Ashok Hinduja, the shares showed an upward trend. He assured that the bank’s financial position remains strong and that the promoter group is ready to provide full support if needed. This statement helped ease market concerns and halted the downward trend.
Stock Movements and Reasons for Decline
On Wednesday, the stock opened with a 7% decline, reaching ₹606. However, it quickly rebounded. On Tuesday, March 11, IndusInd Bank shares had plummeted 27% to close at ₹649. Currently, the bank’s market cap stands at ₹53,322.31 crore.
The drop in shares came after the bank disclosed certain irregularities in its derivative portfolio during an internal review. These irregularities could have a negative impact of about 2.35% on the bank’s total assets.
Hinduja Group’s Assurance
Ashok Hinduja clarified that the bank is capable of resolving these issues and urged shareholders not to panic. He emphasized that the banking business is built on trust and integrity, and the bank remains committed to these principles. He also reaffirmed the promoter group’s full confidence in the bank’s management.
Capital Expansion Decision and Future Plans
The Hinduja Group stated that they are awaiting approval from the Reserve Bank of India (RBI) to increase their stake in the bank from 15% to 26%. They assured that once approval is received, they are ready to inject capital into the bank immediately. Additionally, they expressed their willingness to provide further capital if required in the future.
Bank CEO Sumant Kathpalia’s Outlook
IndusInd Bank CEO Sumant Kathpalia mentioned that the bank might incur some losses in the current quarter but assured that the entire fiscal year will not be in loss. He expressed confidence that the fourth quarter would be profitable and that the bank would start generating strong profits from the first quarter of the next financial year.
These positive developments have contributed to the recovery in IndusInd Bank shares.