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IndusInd Bank shares fall 6% to hit 52-week low on concerns over HFC exposure

Extending its previous session losses, IndusInd Bank share price declined as much as 5.76 per cent to hit 52-week low of Rs 1,220, after opening tad lower at Rs 1,282.65 against previous close of Rs 1294.60

twitter-logo BusinessToday.In   New Delhi     Last Updated: October 3, 2019  | 16:40 IST
IndusInd Bank shares fall 6% to hit 52-week low on concerns over HFC exposure
IndusInd Bank shares closed trade at Rs 1,256.60, down 2.94 per cent, on the BSE

IndusInd Bank shares continued losing streak for the fourth straight session, falling as much as 6 per cent to hit a 52-week low of Rs 1,200 on the Bombay Stock Exchange (BSE) on Thursday, amid persistent concerns over exposure to stressed sectors. The stock of the private sector lender has tumbled nearly 16 per cent in the past three trading sessions, as against 1 per cent decline in the S&P BSE Sensex.

The investor continued to press sell button even after the Mumbai-based bank issued a clarification that its exposure to housing finance company (HFC) is fully collateralised with no overdues.

Extending its previous session losses, IndusInd Bank share price declined as much as 5.76 per cent to hit 52-week low of Rs 1,220, after opening tad lower at Rs 1,282.65 against previous close of Rs 1294.60. Trimming some of early losses, the scrip closed trade at Rs 1,256.60, down 2.94 per cent, on the BSE.

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There was also surge in volume trade as 5.53 lakh shares changed hand over the counter as compared to two-week average volume of 3.77 lakh shares on the BSE.

In a similar fashion, stocks of IndusInd Bank ended 3.09 per cent lower at Rs 1,258 on the National Stock Exchange. The scrip opened marginally lower at Rs 1,295 but soon slipped into negative terrain to hit 52-week low of Rs 1,220.

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"The bank's gross exposure (aggregate of funded and non-funded) to the HFC, its subsidiaries and associate finance companies stands at approximately 0.35 per cent of the loan book. The exposure to HFC is fully/strongly collateralised with no overdues. The group also maintains equal or higher amounts of unpledged fixed deposits with the bank," IndusInd Bank said in a BSE filing on Monday. The bank issued this clarification amid market speculations on the bank's exposure to a large HFC.

The bank's board will meet on 10 October 2019, to approve the unaudited standalone and consolidated financial results for the quarter ended 30 September 2019.

Edited by Chitranjan Kumar

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