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

The Flood Situation in India: A 2024 Overview

The 2024 monsoon season has brought widespread flood in many parts of India, severely impacting…

5 days ago

Hathras Tragedy: Stampede at Spiritual Gathering Claims over 120 Live

Recent news from Hathras highlights one of the most prominent incidents: the tragic stampede at…

6 days ago

Sony Calls Off $10 Billion Merger With Zee

Sony blames Zee for not meeting conditions within the deadline and initiates arbitration proceedings seeking…

2 weeks ago

Kallakurichi Hooch Incident: 61 Lives lost

After drinking poisonous liquor in Tamil Nadu's Kallakurichi district, more than 60 lives were lost,…

2 weeks ago

What to Do After an Accident – The Seven-Steps Guide

Let us admit one simple fact: as car owners, we are constantly worried about getting…

1 month ago

Katchatheevu to Coco Islands, The Story of India’s Giveaways

The Katchatheevu island issue is back in the limelight after PM Modi mentioned it in…

3 months ago