Hinduja Group eyes larger stake in IndusInd Bank, proposes ₹10,000 cr investment

Latest News Updates: According to a media report, the Hinduja Group is currently in discussions to invest ₹10,000 crore in order to raise its ownership in IndusInd Bank. The report from Economic Times suggests that the Hinduja Group intends to increase its stake from 17 percent to 26 percent, and the transaction is expected to be finalized during the second half of FY24.

At the closing of Friday's trading session, shares of IndusInd Bank stood at ₹1,308.45 on the BSE, marking a 2.76 percent increase. On a year-to-date basis, the stock has shown a gain of 6.66 percent, while its overall gain stands at an impressive 58.99 percent.

Earlier this year, the Reserve Bank of India (RBI) granted preliminary and conditional approval to IndusInd International Holdings, an entity of the Hinduja Group, allowing them to increase their stake in IndusInd Bank to 26 percent. As of the March quarter, IndusInd International Holdings held a 12.58 percent stake, while IndusInd Ltd held a 3.92 percent stake in IndusInd Bank.

IndusInd Bank has surpassed market expectations by reporting a standalone net profit of ₹2,040.51 crore for the quarter ending in March, which reflects a significant growth of almost 50% compared to the previous year's figure of ₹1,361.37 crore.

The bank's net interest income (NII) also displayed a positive trend, reaching ₹4,669.46 crore, marking a 17% increase over the previous year.

During Q4FY23, the bank's total income witnessed a year-on-year growth of 16% to reach ₹6,823 crore, while its other income rose by 13% to ₹2,514 crore.

IndusInd Bank witnessed a notable 17% increase in its net interest income (NII) for the fourth quarter of FY23, reaching ₹4,669 crore when compared to the corresponding quarter of the previous year.

Furthermore, provisions (excluding taxes and contingencies) for IndusInd Bank decreased by a significant 29% to ₹1,030 crore during the March quarter, compared to ₹1,461 crore during the same period the previous year.

IndusInd Bank achieved a positive quarter in terms of asset quality, as both gross and net non-performing assets (NPAs) showed a decline. In the January-March timeframe, the gross NPA ratio dropped to 1.98%, improving from 2.06% in the previous quarter and 2.27% in the same quarter of the previous year.