Hinduja Group to Invest Rs 10,000 Crore, Aims for 26% Stake in IndusInd Bank

26 Jun 2023 , 02:04 PM

The Hinduja Group is reportedly in discussions to invest Rs 10,000 crore in IndusInd Bank to increase its stake. The group aims to raise its stake from 17% to 26% in IndusInd Bank.

The deal is expected to be finalized by the second half of the fiscal year 2023-24.IndusInd Year-to-date, the stock has gained 6.66%, and the overall gain stands at 58.99%.

The Reserve Bank of India (RBI) granted provisional and conditional approval to the Hinduja Group’s entity, IndusInd International Holdings, to raise its stake in the bank to 26%.

As of the March quarter, IndusInd International Holdings held a 12.58% stake, while IndusInd Ltd held 3.92% in IndusInd Bank.

IndusInd Bank reported a standalone net profit of Rs 2,040.51 crore for the quarter ending in March, representing a 50% increase from the previous year.

The bank’s net interest income rose by 17% to Rs 4,669.46 crore compared to the previous year. In Q4FY23, the bank’s total income increased by 16% to ₹6,823 crore, while its other income witnessed a 13% rise to Rs 2,514 crore.

The bank’s net interest income (NII) increased by 17% to Rs 4,669 crore in the same quarter compared to the previous year. Provisions (excluding taxes and contingencies) for IndusInd Bank decreased by 29% to Rs 1,030 crore during the March quarter.

Both gross and net non-performing assets (NPAs) showed a decline, with the gross NPA ratio dropping to 1.98% sequentially from 2.06% in the previous quarter and 2.27% in the year-ago quarter.

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