IndusInd Bank shares rise after RBI's assurance, prices rise by more than 5% on Sensex-Nifty

IndusInd Bank's shares rose by nearly six percent on Monday morning. The bank's stock has rallied after the Reserve Bank assured the customers that the company is well capitalized. Additionally, the RBI has also directed the board of directors of the private sector lender to complete the corrective measure relating to the accounting shortfall of nearly Rs 2,100 crore this month.

Shares of IndusInd Bank were at Rs 707.75 on the BSE during the opening trade on Monday, up 5.30%. On the NSE, the company's stock rose 5.58% to Rs 709.90. The company's stock was the biggest gainer among the constituents of the Sensex and the Nifty.

IndusInd Bank disclosed accounting irregularities during the week that are estimated to affect the bank's net worth to the tune of 2.35%. The bank's stock price dropped sharply immediately after this discovery.

RBI said in a statement on Saturday that based on the disclosures available in the public domain, the bank has already appointed an external audit team to conduct a comprehensive review of its current systems quickly assess the actual impact, and prepare an accounting of it.

The statement said, "The Board and Management have been directed by the Reserve Bank to complete the corrective action during the current quarter i.e. Q4 FY25, after making necessary disclosures to all stakeholders."

Allaying the concerns of customers, the RBI said in a clarification that there is no need for depositors to react to speculation at this time. It said that there is some speculation related to IndusInd Bank Limited in some areas, which is possibly due to recent events related to the bank. The central bank has assured customers and investors that the financial position of the bank remains stable and it is closely monitoring it.