IndusInd Bank Share Price : Be it Maharashtra Co-operative Bank, New India Co-operative Bank or Yes Bank, whenever there is a problem in any of the banks, the common customers and account holders are in the most trouble. The anxiety of the account holders who sleep peacefully by keeping their deposits in the bank has started increasing again. What is happening in IndusInd Bank has again raised concerns in the minds of the bank’s customers whether your money or FD deposited in banks is safe. People are remembering Yes Bank.
IndusInd Bank Share Price Today
Indusind Bank’s mess, shares tumble
Shares of private sector lender IndusInd Bank fell on the BSE. Shares of the bank fell as much as 27 percent. Earlier in the day, the bank’s shares fell 5%. After falling for the fifth day in a row, IndusInd Bank shares plunged 27.06 per cent to hit a fresh 52-week low of Rs 656 on the NSE. The stock, which was once worth Rs 1,576, fell to Rs 656. People are remembering the days of Yes Bank after the fall in stocks. Before we understand this, let us understand what has happened to IndusInd Bank?
Why did Indusind Bank’s stock fall so much?
Shares of IndusInd Bank have fallen more than 40 per cent in the last one year. On Tuesday, it was over. Shares of the bank fell as much as 27 percent in a single day. There was panic among investors after reports of discrepancies in the accounts of IndusInd Bank’s forex derivatives portfolio surfaced. The shares of the bank started falling after the disclosure of a mismatch of about Rs 1,577 crore in the accounts of the forex derivatives portfolio. IndusInd Bank’s market capitalisation also lagged behind Yes Bank’s. The market capitalisation of IndusInd Bank slipped to Rs 51,110 crore, while that of Yes Bank crossed Rs 51,350 crore. Yes Bank has overtaken IndusInd Bank in terms of market capitalisation.
Why am I remembering Yes Bank?
However, the case is not the same as that of Yes Bank. The tsunami in IndusInd Bank shares has reminded people of Yes Bank. There too, major irregularities were found in the accounts related to corporate governance and loans. As a result, Yes Bank entered into an agreement for insolvency. Yes Bank shares crashed, which have not been able to recover till date. The situation became so bad that the bank went into a state of closure and the government had to come to its rescue. The bank’s woes came to the fore after the RBI tightened its noose. At that time, the liquidity coverage ratio was at a low of 37 per cent of the total cash outflows for the next 30 days. The bank’s NPAs rose to 16.8 per cent. The total liability on Yes Bank had reached Rs 24,000 crore. Various restrictions were imposed on the bank. The RBI and the government came forward to protect the interests of the people and investors.
Is your money safe in the bank, your FD
Fixed Deposits (FDs) are considered to be one of the safest investments. But the mess in the banks has increased the concern of the people. FDs have been the first choice of people due to their assured returns and risk-free nature, but its concern increases when banks sink. Although FD is an investment with assured returns, the RBI restricts withdrawals from banks in case of a bank fraud. People money is being wasted. If the bank goes under, the amount of up to Rs 5 lakh is refunded under the insurance cover on bank deposits. There is a demand to increase the amount of Deposit Insurance and Credit Guarantee Corporation (DICGC). That is, in the event of a bank collapse, you will definitely get at least 5 lakh rupees.
What is the limit of DICGC insurance
As per Section 16 (1) of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, every depositor of a bank is entitled to a deposit insurance cover of up to Rs 5 lakh. Earlier, this cover used to get Rs 1 lakh. The limit was increased to Rs 5 lakh from February 4, 2020. Now it is being asked to increase it further.
Also Read :- Indusind Bank Share fell by 22%, price reached 52 week low, know the reason
