IndusInd Bank stock price
When the market started on Monday, IndusInd Bank stock was down more than 10%. At 10:50 a.m., IndusInd Bank shares were trading at Rs 1060.05, down 10.85 percent. The collapse in IndusInd Bank’s stock was caused by a whistleblower’s accusation. According to the whistleblower, IndusInd Bank disbursed 84,000 loans without the consumers’ agreement. Despite the fact that IndusInd Bank’s management provided clarification in this situation on Sunday, the company’s stock has plummeted today.
Are you interested in learning more about the case?
According to reports, an unidentified whistleblower contacted bank management and the RBI about BFIL on Friday, November 5, alleging that the company had disbursed “evergreen” loans without the clients’ agreement. Existing bank customers who have not been able to repay their loans, according to the whistleblower, are also being issued new loans.
While providing an explanation on the problem, the bank stated that the field employees had told them in the previous two days, but that the technological flaw has now been corrected.
Indusind Bank has released an official statement in this regard, stating, “The claims of evergreen loans are unfounded. BFIL has given and managed all of the loans. This also included loans given during the first and second waves of Covid-19.” BFIL is an Indusind Bank subsidiary that specializes in microlending.
“In May 2021, 84,000 loans were disbursed without the agreement of the consumers due to a technical glitch,” Indusind Bank said. Due to limits on coronavirus illness, quarantine zones, and village-panchayat level, certain loans were disbursed in cash, according to the bank.
26,073 of the 84,000 customers were active at the end of September 2021, with an outstanding balance of Rs 34 crore. For the September quarter, this represents 0.12% of the loan portfolio.