BUSINESS

IndusInd Bank Slumps 10% Despite Clarification on Loan Evergreening Issue

Shares of IndusInd Bank slumped 10 per cent to Rs 1,069.90 on the BSE in Monday’s opening trade despite the bank management strongly refuting allegations around the evergreening of loans.  With today’s decline, the stock has slipped nearly 14 per cent from its 52-week high of Rs 1,242 on October 28, 2021. In comparison, the S&P BSE Sensex was down 0.22 per cent at 59,935 points.

According to media report, whistleblowers, several people, including a group of senior employees of the IndusInd Bank arm, Bharat Financial Inclusion (BFIL), have alerted the Reserve Bank of India (RBI) and the board of the private sector lender about lapses in governance and accounting norms to allegedly ‘evergreen’ loans running into thousands of crore since the outbreak of Covid-19.

For clarification purpose, IndusInd Bank, in a press release, said that the allegations made by certain anonymous individuals purportedly acting as whistleblowers, as published in the Mumbai edition of The Economic Times on November 5, 2021 titled as “Whistleblowers Raise Loan Evergreening Issue at IndusInd Arm” are grossly inaccurate and baseless.

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