The new liquidity measure comes days after the Reserve Bank of India said that the country’s fifth largest private bank has satisfactory level of capital.
Days after massive derivatives loss, IndusInd Bank raised Rs 11,000 crore selling certificates of deposits, an Economic Times report said on Tuesday. The fundraising is seen not only as a much-needed liquidity booster but also help in gaining investors’ confidence.
The new liquidity measure comes days after the Reserve Bank of India said that the country’s fifth largest private bank has satisfactory level of capital. As per the ET report, IndusInd Bank issued selling certificates of deposits spread across various maturity range – three months to one year.
Citing the Clearing Corporation of India data, the ET report said that the CDs issued by the bank have been priced between 7.80 and 7.90 percent. The report further added that the CDs issued by IndusInd bank were at a higher rate in comparison with other lenders.
Last week, IndusInd Bank’s stocks had plummeted 27percent on the back of the revelation regarding the discrepancies in the accounting.
On March 10, the lender had said that an internal audit had revealed issues in bank’s derivatives portfolio. In a related development, the RBI has also asked the bank to nominate external candidates for the role of CEO and COO. This comes after the central bank extended the current CEO’s term for only one year as against three-year request by the lender.
Source: www.moneycontrol.com