IndusInd Bank shares declined in trade after fresh concerns surfaced regarding its microfinance loan portfolio. According to a Moneycontrol report, the Mumbai-based lender is currently investigating alleged irregularities involving ₹6,000–7,000 crore worth of loans.
Sources quoted in the report said these were mostly small-ticket, unsecured loans that may have been misclassified as agricultural loans, though they were linked to microfinance institutions (MFIs). The loans were reportedly disbursed to prevent existing MFI loans from turning non-performing.
While not exactly a case of loan rollovers, a banker familiar with the probe told Moneycontrol that the transactions resemble such practices. The outcome of the internal investigation could lead to further scrutiny and regulatory implications, adding pressure on the stock.
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