IndusInd Bank - Management Denies Allegations, Admits Technical Glitch In May: ICICI Securities
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ICICI Securities Report
IndusInd Bank Ltd., through a press release and conference call, has denied allegations regarding loan evergreening in Bharat Financial Inclusion Ltd. -BFIL) stating they are grossly inaccurate and baseless.
While it reiterated its stance of a strong governance and control framework, micro finance institution delinquency and credit cost behaviour will be keenly watched out.
Another monitorable will be any management change at BFIL Mr. MR Rao now acts as an advisor after stepping down from BFIL’s non-executive vice-chairmanship.
Denying media reports regarding other BFIL exits, IndusInd Bank's management stated it has not received any more senior management resignation for now.
It also admits of some technical glitch in May 2021 wherein loans were disbursed without customer consent, though was rectified expeditiously and now all loans are disbursed through biometric authorisation.
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