Things 'should soon settle down': RBI on IndusInd Bank's measures

RBI says it is satisfied with IndusInd Bank's accounting clean-up post derivatives irregularities but stresses it will act if necessary and has sharpened supervision tools

The Reserve Bank of India (RBI) on Friday said things “should soon settle down” at IndusInd Bank and indicated it is satisfied with the clean-up the lender has undertaken after accounting discrepancies in its derivatives and other portfolios.

 

The private-sector lender’s managing director and chief executive officer (MD & CEO) and his deputy resigned in April.

 

RBI Governor Sanjay Malhotra said “episodes” like accounting discrepancies are not worrying as long as they are infrequent. The RBI has sharpened its supervisory tools after the IndusInd Bank episode to anticipate “red flags” in advance.

 

Shares of IndusInd Bank soared 2.50 per cent