In a bid to strengthen its funding position amid deposit withdrawals following the disclosure of a Rs 2,000 crore accounting discrepancy in its derivatives book, private lender IndusInd Bank raised Rs 11,000 crore by selling certificates of deposit (CDs) on Monday.

The fundraising, coming a couple of days after the Reserve Bank of India said that the country’s fifth-largest bank holds sufficient capital despite a likely impact on its net worth, is expected to boost investor confidence.

IndusInd Bank issued CDs across six maturities spread across three months to one year, the Economic Times reported. They were priced between 7.80% and 7.90%, according to data from the Clearing Corporation of India (CCIL).

These CDs were issued at a higher rate in comparison with other lenders.

The amount raised by IndusInd Bank accounted for more than 40% of the total CDs raised by all banks on Monday. As per CCIL data, banks issued CDs worth Rs 27,140 crore on Monday.

A day after IndusInd Bank disclosed that accounting lapses in the derivative books could impact its net worth by 2.3% as of 31 December 2024, the private lender's share price plunged 27% on 11 March.

In a related development, the RBI recently directed the bank’s board to look for external candidates for the CEO and COO roles. The central bank also granted the current chief executive Sumant Kathpalia an extension of just one year, instead of the lender's request for three years.