Last Updated:June 06, 2025, 13:50 IST
IndusInd Bank Ltd’s shares rose over 4% on June 6 post-RBI officials’ comments on the lender’s recent troubles, including accounting lapses
Know what RBI said about IndusInd Bank’s accounting lapses (IMAGE: REUTERS)
IndusInd Bank Share Price: IndusInd Bank Ltd’s shares jumped over 4% on June 6 after the Reserve Bank of India (RBI) officials addressed concerns about the bank’s recent accounting lapses and management turmoil.
RBI Governor Sanjay Malhotra, at the post-monetary policy press conference in Mumbai, said, “IndusInd Bank has taken enough steps to improve accounting practices. The bank is doing well overall.”
He added, “IndusInd MD and CEO have resigned, which should be good enough. Law will take its course on the IndusInd fraud. We won’t fail in our duty if we have to step in.”
RBI Deputy Governor J. Swaminathan also sought to calm investor nerves, stating, “On IndusInd, the issue should settle down very soon. We will keep monitoring the banking system and see no systemic impact arising from the IndusInd Bank issue.”
At 1 pm on June 6, IndusInd Bank shares were trading 4.2% higher at ₹837.2 apiece.
Governor Malhotra further noted, “Normally, we do not comment on individual banks. Let us not be speculative on IndusInd Bank fraud.”
IndusInd Bank has been navigating a troubled phase. A forensic audit is currently underway after it disclosed a Rs 2,000-crore hit to its net worth in March due to lapses in derivatives accounting. Subsequent probes have uncovered additional accounting irregularities. The bank is now in the process of appointing a new leadership team, including a new CEO.
Last month, SEBI barred former IndusInd CEO Sumant Kathpalia, Deputy CEO Arun Khurana, and three others from trading in securities over alleged insider trading. SEBI’s interim order said these officials sold shares while in possession of unpublished price-sensitive information, avoiding losses of Rs 19.78 crore.
SEBI’s preliminary findings cited emails showing the senior management was aware of the accounting discrepancies as early as December 2023 and acknowledged their “huge impact” internally.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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