Last updated: 28 Jul, 2020 | 03:49 pm
Private sector lenders have been hiking their provisions to protect their balance sheet from bad loans, once the moratorium ends. IndusInd Bank’s provisions rose 5-fold compared to the same period last year. The bank said that on the basis of a stress test, the bank would need to provide around Rs 1,376 crore against stressed assets, of which Rs 1,203 crore worth of provisions have already been made as of June 30.
IndusInd Bank had seen a lot of challenges in the April-June quarter, after veteran Romesh Sobti retired from the bank as CEO in March. Sumant Kathpalia had taken over the reins from April. There were also some concerns regarding the bank’s exposure to certain stressed sectors, leading the shares to plunge to a 52-week low of 235.60 in March (nearly 80% down from all-time high). The bank had clarified that it is financially strong, well-capitalized, profitable, and a growing entity with strong governance. The shares have more than doubled from their March lows.
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