MUMBAI: The Reserve Bank of India (RBI) governor Sanjay Malhotra on Friday said fraud-hit IndusInd Bank is “doing well” now, and added that the resignation of MD and CEO Sumant Kathpalia should be seen as a “good enough” step from an accountability perspective. Speaking to reporters at the monetary policy press conference, Malhotra said that the bank has taken sufficient steps to improve its accounting practices.”The MD and CEO of the bank resigned, owning moral responsibilities. So, I thought that should be good enough. Do you expect that all the board members (should resign) … I think the MD and CEO, who is also a member of the board… has taken responsibility, that is at the boardlevel itself,” Malhotra said.Deputy governor Swaminathan J said the bank had complied with all the requirements set by the RBI. The first was to ensure proper accounting of all discrepancies, backed by internal and external audits, and reflected in the March quarter results. Secondly it conducted a forensic audit. The central bank’s third priority was to ensure that no customer suffered losses or inconvenience.Each of these crises offers RBI some lessons and it sharpens the supervisory tools, he said. “Going forward, we will look at these kinds of red flags so that we are in a position to anticipate themmuch in advance. If not immediately but very soon it should settle down and then be back to normal.”Post the governor’s comments, IndusInd Bank’s share hit an intraday high of Rs 845.9 apiece on the BSE, up 5.3 per cent.
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