Despite issuing clarifications, Indusind Bank remains a big loser. Over the last three trading sessions, it has lost over 14%. Today, at one point, it did rise over 2.3% to Rs.1413.80 but soon slipped back into the red at Rs.1304.35, going down over 5.5%.
The Delhi High Court accepted a public interest litigation (PIL) filed against the bank which alleged round-tripping of funds by the bank. The market was agog with news of its about its huge exposure to Indiabulls Housing Finance Ltd (IHFL).
The company issued a clarification yesterday stating that as of September 29, 2019 closing, the bank's gross exposur (aggregate of funded and non-funded) to the HFC, its subsidiaries and associate finance companies stands at approximately 0.35% of the loan book.
The bank said that exposure is fully / strongly collateralised wilh no overdues. 'The group also maintains equal or higher amounts of unpledged fixed deposits with the bank.
Obviously, the marketmen are not convinced and continue to remain cautious, preferring to wait for the Q1FY21 earnings to come in.