(Reuters) -Shares of India's IndusInd Bank rose as much 5.3% on Friday after a deputy governor at the country's central bank said "things should settle down soon" at the lender, which has grappled with accounting lapses.

IndusInd Bank has taken enough steps to improve accounting practices. The issue in the bank should settle down very soon. The bank is doing well on the whole, RBI Governor Sanjay Malhotrasaid in its post-monetary policy press conference.

Shares of IndusInd Bank rose as much as 5.3 per cent on Friday, after the Reserve Bank of India (RBI) said the problems at the private sector lender are likely to settle soon. However, the stock later gave up some of its early gains.