Hinduja Group may increase shareholding in IndusInd Bank from 17% to 26% by Rs. 10,000 crore investment

IndusInd International Holdings, a Hinduja Group company, received in-principle and conditional clearance from the RBI earlier this year to increase its shareholding in IndusInd Bank to 26%.

According to media reports, the Hinduja Group is in discussions to contribute Rs. 10,000 crore to increase its shareholding in IndusInd Bank. According to the Economic Times, Hinduja Group will probably expand its ownership from 17% to 26%. By the second half of FY24, the deal is most likely to be finished.

On BSE, IndusInd Bank’s shares closed Friday at 1,308.45, up 2.76 percent. The stock has up 6.66 percent so far this year, while it has increased 58.99 percent overall.

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IndusInd International Holdings, a member of the Hinduja Group, received preliminary clearance from the RBI earlier this year to increase its ownership in IndusInd Bank to 26%.

As of the March quarter, IndusInd Bank was owned by 12.58% of IndusInd International Holdings and 3.92% of IndusInd Ltd.

With a standalone net profit of 2,040.51 crore for the quarter ending in March, IndusInd Bank beat Wall Street estimates. This is an increase of about 50% over the figure of 1,361.37 crore from the prior year.

The lender’s net interest income was $4,669.46 crore, an increase of 17% over the prior year. The bank’s overall income in Q4FY23 jumped 16% year over year to $6,823 crore, while its other income rose 13% year over year to $2,514 crore.

Net interest income (NII) for the institution climbed 17% to 4,669 crore for Q4FY23 compared to the same quarter the previous year.

During the quarter ending in March, IndusInd Bank’s provisions (excluding taxes and contingencies) dropped as much as 29% to 1,030 crore. In the same time frame the year before, it was 1,461 crore.

The bank reported a satisfactory quarter for asset quality since gross and net non-performing assets (NPAs) are both decreasing. The gross NPA ratio dropped from 2.27% in the prior quarter and 2.06% sequentially for the months of January through March to 1.98%.