We have deep pockets and completely back IndusInd Bank: Ashok Hinduja

Posted by swapnil jukunte on March 18th, 2020

There is a lot of mistrust in the financial system right now. IndusInd BankNSE -10.29 % has been affected. Do you believe there is systemic risk?

It is clear that since the IL&FS issue there has been a significant slowdown in the financial space, we went through a period of liquidity crunch for NBFCs, there has been bad news on the economic growth front as well and corporates have stopped expansion. This whole situation has given rise to punters who are using a few people for speculation, but it’s hard to catch them. Speculators don’t realise that to earn quick bucks, they are harming a healthy institution.

The failure of a few corporates has led to a lot of gossip and speculation, this is what happened with IndusInd Bank as well. Everything was smooth sailing for us; just one transaction on IL&FS, which was a triple A-rated firm and almost with a sovereign backing, went bad. We have deep pockets and we are completely backing IndusInd bank, though it does not need capital for the next two years. Continue reading