Financial Hour

Only the tail of the elephant is wagging, elephant has passed: IndusInd Bank

Over the past week, IndusInd Bank Ltd. witnessed almost one-fifth of its market value wiped out due to concerns about its creditors. On Friday, the bank said that the confidence crisis in the financial system of India is now fading away.

IndusInd bank’s outstanding loans to overstretched borrowers dipped last quarter. The bank is planning to resolve the default of its borrowers, and the authorities are also taking steps to prohibit future financial delinquencies at shadow banks.

Romesh Sobti, Chief Executive Officer of the IndusInd Bank, said, “All we need now to turn the tide of caution completely is a resolution of a large delinquent account.” He added, “Banks are already beginning to look more positively at lending to non-bank financiers and the real estate segment as the worst is behind us.”

Joining Edelweiss Financial Services Ltd. and Axis Bank Ltd., IndusInd also believes that the slump in the Indian finance sector is going to end soon.

Since the IL&FS Ltd. (Infrastructure Leasing & Financial Services Ltd.) crisis, most of the banks in India have witnessed slowdown for more than a year. Default by some of the other shadow landers worsened the situation of the financial sector.

20% of the shares of the IndusInd Bank wiped out amid speculations that Indiabulls owed money to the bank. Almost a year ago, Yes Bank Ltd. had to complain to the police on spreading the rumours and fake news about the financial health of the bank, the bank lost more than 80% of its shares.

IL&FS had already spoken of getting rid of its debt obligation by March 2020. Speaking on the future of the Indian financial sector Sobti said, “The elephant has passed through, though the tail is still wagging.”

Trust is the key to success in the opinion of several prominent experts in the financial sector, which many believe is missing. While earlier, the lack of confidence was visible in the market, the past quarter has surprisingly witnessed an increase in the confidence of sentiments amongst the market players.

Share
Tags: Finance

Recent Posts

Padma Award 2025: Who Made the Cut This Year?

The Padma Awards 2025 have been officially announced, recognizing the remarkable contributions of individuals across…

2 days ago

India’s Extradition Challenge: 5 Fugitives from Terrorism and Financial Fraud

India is currently engaged in a determined effort to extradite several high-profile fugitives who have…

3 days ago

Sidhant Gupta Discusses Key Takeaways from the 2025 Budget

Let’s dive deeper with Sidhant Gupta, former director of Kwality, and discuss the key highlights…

4 days ago

Tragedy Strikes at Nirvana Laddu Parv in Baghpat: 6 Dead, Several Injured as Makeshift Stage Collapses

Incident Details: A Festive Night Turns to Tragedy On the evening of January 27, 2025,…

5 days ago

Saif Ali Khan’s Home Under Attack: Intruder Targets Jeh’s Room, Reveals House Help

Incident Overview On January 17, 2025, a distressing incident unfolded at the residence of Bollywood…

3 weeks ago

Six Dead, Over 20 Injured in Stampede at Darshan Ticket Counters in Tirupati

Tragedy Strikes as Devotees Jostle for Vaikunta Ekadasi Tickets TIRUPATI: A devastating stampede occurred late…

4 weeks ago