Shares of IndusInd Bank on Wednesday gained over 7 per cent after the lender announced a ₹3,288-crore capital raising plan - first in four years - through preferential allotment route.
The stock rose by 6.99 per cent to ₹563.75 on the BSE. At the NSE, it jumped 7.17 per cent to ₹564.75. It was the top gainer in the Sensex and Nifty pack during morning trade.
Under the proposed issue, the bank will allot 6.275 crore equity shares at a price of ₹524 per share to a set of marquee investors and the promoters, subject to shareholders and other necessary approvals.
IndusInd Bank Q1: Building higher provisions and retail deposits will be keyWhile the move to shore up capital is positive, the bank needs to increase its provisions to deal with asset quality risk in its corporate, MFI and CV book
The Hinduja Group-promoted IndusInd Bank on Tuesday reported 67.8 per cent decline in net profit to ₹460.64 crore in the June quarter, driven down by a five-fold increase in provisions for bad loans and special capital allocations for the pandemic.
The bank had posted a net profit of ₹1,432.50 crore in the same quarter previous fiscal.
The massive fall is the bottom line numbers despite the private sector lender clocking a 16.4 per cent growth in net interest income to ₹3,309.2 crore, aided by a marginal increase in net interest margin to 4.28 per cent from 4.25 per cent in the reporting quarter.
Total income inched up to ₹8,682 crore from ₹8,625 crore, while total expenses came down to ₹5,754 crore from ₹6,034 crore.