IndusInd Bank denies merger proposal; stock surges 3%

The promoter of the Bank calls ‘rumour’ in certain media reports as malicious, untrue and baseless.

Oct 26, 2020 09:10 IST India Infoline News Service

IndusInd Bank
IndusInd Bank on Sunday has denied the ‘rumour’ in certain media reports concerning a merger proposal, and considers it to be malicious, untrue and baseless.

The Bank stock is on Monday is trading at Rs623.40 up by Rs15.95 or 2.63% from its previous closing of Rs607.45 on the BSE, at around 9.45 am. 
The scrip opened at Rs615.25 and has touched the day's high and low of Rs633 and Rs615.25 respectively.

“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 broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always,” the promoter of the Indusind Bank, IndusInd International Holdings Ltd, (IIHL), a Mauritius based company.

The lender further said that 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 Bank’s 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,” it added.

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