on Jun 06, 2025)Shares of India’s IndusInd Bank rose as much 5.3% on Friday after after RBI deputy governor J Swaminathan said “things should soon settle down” at the lender, which has grappled with accounting lapses.
“IndusInd Bank has taken enough steps to improve accounting practices. The bank is doing well on the whole,” said RBI Governor Sanjay Malhotra during the post-monetary policy press conference.
IndusInd MD, CEO has resigned, that should be “good enough”, Malhotra stated.
IndusInd said in March that years of incorrect accounting of internal derivative trades led to a $230 million hit to its accounts for the financial year ended March 31.
Separately, an internal audit of its microfinance business found that around $80 million was incorrectly recorded as interest over three quarters, which it reversed in January.
Its CEO, Sumant Kathpalia, and deputy, Arun Khurana, stepped down in April.”Whatever that was supposed to play out (with IndusInd Bank)over the last 3 months is more or less on track,” Janakiraman said.Swaminathan said that things should settle down at the lender soon and be back to normal.
The stock, which is set for its best day in nearly two months, was among the top gainers on the Nifty Bank index, which is up 1.5% propped up in part by cuts of the key lending rate and cash reserve ratio earlier in the day.
IndusInd Bank is down 6% since first disclosing the derivatives accounting lapse, underperforming the bank index which has risen 17% in that period.
(With Reuters inputs)