IndusInd Bank shares were up around 1 percent at Rs 474 after having touched a low of Rs 443 earlier in the day. The stock has risen over 20 percent in the last couple of trading sessions after the decline in fourth quarter net profit was not as steep as the market was fearing it to be.

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The stock had fallen as low as Rs 235 a few weeks back on persistent speculation about the bank's financial health. There was talk of heavy withdrawals by depositors and that the bank was borrowing from the money market at a higher rate. This was expected to hurt the net interest margin of the bank.

However, net interest margin of 4.25 percent during the fourth quarter was the best ever. Also, quarterly operating profits were the highest in the last four years.

But investors were heartened by the management's ability to attarct deposits from retail, government and corporate clients this month. During the concall to discuss the earnings, the management said that they were getting Rs 50-60 crore of retail deposits everyday, and around Rs 6000 crore during the month from companies. The bank has also gout around Rs 650 crore from state government and said it expected to get another Rs 2000-2500 crore from them.

In the run-up to the results, many traders had short sold the stock, expecting the earnings to disappoint. Many of those positions are being covered, causing the stock price to rally.