Shares of Indusind Bank fell about11 percent, know the major reason for the decline
- ByStartupStory | November 9, 2021
IndusInd Bank was the laggard in both the benchmark indices. The Company’s market valuation on BSE declined by Rs 9851.34crore to Rs 82171.66 crore. In terms of volume, more than10.50 lakh shares were traded on the BSE and 2.90 crore on the NSE.
New Delhi, PTI. Shares of private sector bank IndusindBank fell about 11% on Monday.
The bank admitted that due to technical glitch, it disbursed 84,000 loans without the consent of customers inMay, during trading on BSE, the shares fell by12.33 per cent to Rs 1,042.10. It closed at Rs1,061.45, down 10.71 percent. On the NSE, it closed at Rs 1,063.95, down 10.52 percent. IndusIndBank was the laggard in both the benchmark indices. The Company’s market valuation declined by Rs 9,851.34crore to Rs 82,171.66 crore on the BSE. In Terms of volume, more than 10.50 lakh shares were traded on the BSE and 2.90 crore on the NSE.
In fact, the whistleblower had claimed that Indusind Bankhad disbursed 84,000 loans without the approval of the customers.Although the bank gave clarification in this matter, it did not appear to have any effect on the shares and the shares of the bank were trading at Rs 1060.05, down 10.85% as soon as the market opened on Monday.In fact, on Friday, November 5, there were reports that the bank had disbursed evergreen loans without the consent of the customers. This information came through an anonymous whistleblower. However, the bank had clarified in this matter and said that due to technical glitch, it disbursed 84,000loans in May without the consent of the customers.
On this issue, an official statement was issued byIndusind Bank saying that the allegation of evergreen loan is baseless and all the loans have been given and managedby BFIL. During this, loans disbursed during the first and second wave of Covid-19 are also included. It is to be known that BFIL is a microlending focused subsidiary of Indusind Bank.
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