Stocks

IndusInd Bank shares jump over 7% on fund raising plan

PTI New Delhi | Updated on July 29, 2020

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.

 

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.

Published on July 29, 2020

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