IndusInd Shares Fall Nearly 11 Percent Amid Loan Evergreening Report

New Delhi: On the Bombay Stock Exchange (BSE), the share price of the IndusInd Bank recorded a decline of 10.41 percent on Monday.

Following the decline, the shares of the bank were trading at Rs 1,065 and were trading with a fall of 10 percent on the National Stock Exchange (NSE) at 12:15 pm.

Shares fell after a recent report citing a whistleblower complaint about "evergreen loans" in the bank's microfinance lending arm, Bharat Financial Inclusion Ltd (BFIL). However, responding to the report, IndusInd Bank's management denied and asserted that it was "wrong and baseless".

Further, the bank clarified that due to a technical glitch, the loan was disbursed into the accounts of the customers without their consent and the issue has been rectified and has made biometric authorization mandatory for loan disbursement.

Responding to a news report citing a whistleblower complaint about having Evergreen loans at its MFI branch BFIL, the bank said in a recent stock exchange filing that the bad loan recognition process is fully automated as per regulatory norms.

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