IndusInd Bank in troubled waters after erosion in deposits
Mumbai/IBNS: IndusInd Bank shares slumped over 10 per cent on Tuesday after the bank revealed it has lost 10 per cent of its deposits since Yes Bank was declared insolvent this year, media reports said.
Responding to an investor call, the bank had informed about the erosion in its deposit. This is a major downward slide in the private bank's deposit, which was 2 per cent two weeks ago, a Mint report said.
The report said that after Yes Bank's downfall, the state governments are no longer parking their funds in the private banks over security concerns.
Further, the bank's exposure to some vulnerable sectors is posing concerns amid lockdown called to contain coronavirus spread, the report said.
IndusInd Bank has lost 76 per cent of its market value this year, said the report. This is not just due to asset quality, but due to the rising fears over the deposit franchise, it added.
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