Stocks

IndusInd Bank scrip down over 31 per cent; lender says it is well capitalised

Our Bureau Mumbai | Updated on March 18, 2020 Published on March 18, 2020

The IndusInd Bank scrip fell by over 31 per cent in intra-day trade on BSE on Wednesday amidst investor concerns over small and mid-sized private sector lenders, in the wake of the YES Bank crisis.

The scrip, down 31.86 per cent, was trading at Rs 411.75 apiece in afternoon trade.

In a statement on Tuesday night, the bank dispelled market rumours and speculation around the stock and stressed on its strong fundamentals as a well-capitalised, profitable, growing entity with strong governance.

“We expect our net NPA of 1.05 per cent as of the last quarter to fall below 1 per cent, in line with our ambition to take provision cover beyond 60 per cent,” it said.

It further said the promoter has sought Reserve Bank of India approval to increase its shareholding to 26 per cent and awaits further guidance on this.

“Promoter has already informed the exchange about the simultaneous release of non-disposal undertaking, with the creation of a pledge in relation to 23.8 million shares of the bank. No new borrowing was undertaken and was merely a formalisation of a three-year-old arrangement. The money was originally raised to make an overseas acquisition, which did not fructify, the pledge is a small fraction of promoter holding in the bank,” it further said.

This is the second such statement from IndusInd Bank in recent weeks. Another private sector lender, RBL Bank, has also clarified market speculation around its stock.

Published on March 18, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.