IndusInd Bank share price plunges 12% amid widespread selloff

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IndusInd Bank share price plunged more than 12 percent in the morning trade on BSE on March 16 amid a widespread selloff in equities due to growing worries over the rising cases of coronavirus and the impact of the outbreak on the global economy.

Shares of the private lender have been under pressure following concerns about the bank’s health.

According to reports, the bank’s promoters, the Hinduja brothers, are fully backing the lender and attribute the latest decline in the stock to excessive speculative action.

CEO Romesh Sobti wrote to investors that rumours about the health of the bank were unfounded and that IndusInd “remains focussed on building scale with profitability, on a platform of strong capitalisation/liquidity and high credit ratings”.

The state of some private banks in India has customers and investors worried after authorities were forced to step in and curtail operations of Yes Bank to prevent a collapse.

In his letter to customers, Sobti said IndusInd remained healthy and also denied that the bank was considering investing in Yes Bank.

Sobti said that the bank had neither considered nor evaluated, especially at management and board level, such a proposition.

After the Yes Bank write down of AT1 bonds, IndusInd Bank deferred a board meeting that was to discuss raising capital through these bonds, blaming the “current market conditions” for the deferral and said it was sufficiently capitalised.

Shares of IndusInd Bank were trading 10.72 percent down at Rs 717.85 on BSE at around 1030 hours.

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