IndusInd Bank gains on buzz of takeover; promoters clarify rumor baseless

IndusInd Bank rose 2.63% to Rs 623.45 after the media reported that Kotak Mahindra Bank is exploring a potential takeover of the private sector bank.

Oct 26, 2020 10:10 IST capital market

The scrip jumped as much as 4.2% on the BSE to hit the days high at 633 in trade today.

The media reported that Kotak is looking at an all-stock acquisition. It also said that the UK-based Hinduja family began the discussion for selling control of the Mumbai-based lender following a dispute between the four brothers over the familys fortune.

As on September 2020, the promoter group held 13.45% in Indusind Bank. Public held 78.16% stake.

Indusind Bank on 25 October 2020, however, said that the reports of a takeover are malicious, untrue and baseless.

?The Promoter of Indusind Bank, IndusInd International Holdings Limited (IIHL), completely denies the said rumour and considers it malicious, untrue and baseless. IIHL is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always.

Whenever financial crises have impacted the Indian economy and its financial institutions, the Promoter of the Indusind Bank has positively intervened to support and improve the financial position of the bank. It has a solid track record of facilitating the acquisitions in 2002 of IndusInd Enterprises and Finance Ltd (IEFL) by the bank, followed by another one of Ashok Leyland Finance Ltd (ALF) in 2004. Very recently in July 2019, it supported the acquisition of Bharat Financial Inclusion Ltd (BFIL) by the Indusind Bank.

The Promoter would continue to support Indusind Banks initiatives to grow inorganically should any such opportunities arise on the horizon in the future. It is worth recalling that amongst the 9 original licensees (4 institutional and 5 private) that were allowed to set up banking operations in 1994, IndusInd Bank is the only privately promoted bank that successfully continues its operations because of the promoter support. The Promoter reaffirms its unstinted support to the Indusind Bank.

IndusInd Bank caters to the needs of both consumer and corporate customers. As of 31 March 2020, the banks distribution network included 1,911 branches/banking outlets and 2,760 onsite & offsite ATMs across 751 geographic locations.

The bank will announce its second quarter earnings on Friday, 30 October 2020. IndusInd Banks standalone net profit slumped 67.84% to Rs 460.64 crore on 0.65% rise in total income to Rs 8,680.92 crore in Q1 June 2020 over Q1 June 2019.

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