IndusInd Bank - which is also a Nifty Bank constituent has been the top stock pulling the Bank Nifty index down or contributing over 200 points to the loss on the Nifty Bank index.
The private bank has hit day's low price of Rs. 1053 per share on the NSE, tumbling over 11 percent in trade on Monday (November 8, 2021). On November 6, 2021, the bank released a press brief in response to a news item titled 'Whistleblowers Raise Loan Evergreening Issue at IndusInd Arm' published in The Economic Times Mumbai edition on November 5, 2021. This disclosure is being submitted in accordance with Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 said the BSE filing.
A copy of this letter is being hosted on the Bank's website at www.indusind.com. "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. The statements quoted in the report overlook factual aspects and further highlighted some of the clarifications as part of the release.
The bank has thus denied the allegations of evergreening loans- which involves measures or steps taken to prevent current loans in turning bad or non-performing.
Last the stock at 10:03 am quoted down by 10.3 percent to 1066.55.