IndusInd Bank secured $2 billion in high-cost market deposits last month, marking its largest monthly fundraising in at least two years. The move comes as the bank strengthens its funding base following the disclosure of accounting discrepancies.
Earlier in March, India’s fifth-largest private lender revealed a $175 million shortfall in its balance sheet due to issues in its derivatives portfolio, raising concerns over governance. In response, the bank appointed Grant Thornton to conduct a forensic audit of the matter. Since the revelation, IndusInd Bank’s stock has plunged nearly 27%.
According to public data from India’s clearing house, the bank raised 165.50 billion rupees ($1.93 billion) in March by issuing certificates of deposits (CDs) with maturities ranging from three months to a year. Notably, about 85% of these funds were secured after the accounting lapses were made public.
The cost of borrowing has also increased for the bank. Data shows that in March, IndusInd Bank offered 7.90% on its one-year CDs, a 20-basis-point rise compared to similar issuances in February.