IndusInd Bank shares rise 2.5% after RBI's positive remarks

Shares of IndusInd Bank on Friday climbed 2.50 per cent after Reserve Bank Governor Sanjay Malhotra said the firm is "doing well" now, and added that the resignation of MD and CEO Sumant Kathpalia should be seen as a "good enough" step from an accountability perspective.

The stock advanced 2.50 per cent to settle at Rs 823.20 on the BSE. During the day, it jumped 5.32 per cent to Rs 845.85.

At the NSE, shares of the firm climbed 2.44 per cent to Rs 822.85.

The RBI also said the bank has complied with all the regulatory asks over the turbulent period.

"The MD and CEO of the bank resigned, owning moral responsibilities. So, I thought that should be good enough. Do you expect that all the board members (should resign)... I think the MD and CEO, who is also a member of the board... has taken responsibility, that is at the board level itself," Malhotra said.

The governor made it clear that the RBI will not shy away from taking any action against the bank and the law will take its own course if there are any criminalities in the matter.

IndusInd Bank has been witnessing challenges for the last few quarters, starting with its microloan exposures and then conceding accounting lapses. It recorded the worst quarterly performance in its history by posting a Rs 2,329-crore loss in the March quarter, as it took the brunt of all the accounting lapses and oversights.

"I think the bank has taken enough number of steps to improve their accounting and other practices, and on the whole, I think it is doing well," Malhotra told reporters at the RBI headquarters in Mumbai.