IndusInd Bank shares rise 5% as RBI officials hope things will settle soon
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Shares of IndusInd Bank rose 5% on Friday after RBI officials expressed confidence that things should soon settle down at the lender, which has grappled with accounting lapses. Governor Sanjay Malhotra added that the central bank will not fail in its duty in case further steps have to be taken. The crisis began with a forensic audit by Grant Thornton, which flagged discrepancies in how the bank accounted for certain internal currency derivative transactions conducted over the past six years. The trades, intended to hedge exposures, were not properly marked to market, leading to inflated earnings and misstated positions on the balance sheet. The shares of IndusInd Bank crashed nearly 50% at one point after the lapses came into public domain, but since then recovered some of the losses. The stock is down 14% year-to-date (YTD). While the Reserve Bank of India (RBI) has approved an interim executive team of Soumitra Sen and Anil Rao to manag...