RBI Calms IndusInd Fears: Stock Gains Over 5% After ‘Settle Soon’ Remark

Shares of IndusInd Bank surged over 5% during intraday trading on Friday after Reserve Bank of India officials assured investors that the bank’s internal troubles are being resolved.

The stock closed 2.5% higher on the BSE at Rs 823.20, while it ended the session at Rs 824.00 on the NSE, gaining 2.59%.

The rally was triggered after RBI Deputy Governor J. Swaminathan stated, “Things should soon settle down” at IndusInd, which has recently been under scrutiny for accounting lapses and leadership exits. His comments came during the post-policy press conference following the RBI’s monetary policy announcement.

Leadership Changes Aim to Restore Order
RBI Governor Sanjay Malhotra also addressed the issue, saying, “IndusInd Bank has taken enough steps to improve accounting practices. The bank is doing well on the whole.” Speaking on the leadership reshuffle, he added, “The MD and CEO has resigned, that should be good enough.”

The top-level exits included CEO Sumant Kathpalia and Deputy CEO Arun Khurana, both of whom stepped down in April 2025 amid increasing regulatory and investor pressure.

Accounting Errors Trigger Major Financial Impact
IndusInd Bank’s credibility took a hit earlier this year after it disclosed a $230 million blow to its financials due to incorrectly booked internal derivative trades over several years. Additionally, an internal audit of its microfinance business found that around $80 million had been wrongly recorded as interest income across three quarters—a mistake the bank reversed in January.

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RBI Deputy Governor Rajeshwar Rao Janakiraman said, “Whatever that was supposed to play out (with IndusInd Bank) over the last 3 months is more or less on track.”
 

IndusInd Bank Share Price History
Despite Friday’s gains, the bank’s long-term stock performance reveals persistent volatility. Over the last one week, the stock gained 0.75%. However, it declined 1.02% in the last one month, 15.23% in the last three months, and 16.90% in the last six months. The 1-year performance shows a sharp drop of 44.40%, and over three years, the stock is down 11.36%. Interestingly, it gained 94.82% over the last five years but has fallen 1.31% over a 10-year period.