Hinduja Group may raise stake from 17% to 26%, to invest ₹10,000 cr: Report

Hinduja Group is likely to increase its stake from 17 per cent to 26 per cent, reported Economic Times. The deal is likely to be completed by the second half of FY24.

On Friday, the shares of IndusInd Bank ended 2.76 per cent at ₹1,308.45 on BSE. On a year-to-date basis, the stock has gained 6.66 per cent, while it gained 58.99 per cent.

Earlier this year, RBI gave in-principle and conditional approval to IndusInd International Holdings, a Hinduja Group entity, to raise its stake in IndusInd Bank to 26 per cent.

IndusInd International Holdings has 12.58 per cent and IndusInd Ltd had 3.92 per cent as of the March quarter in IndusInd Bank.

IndusInd Bank exceeded the Street’s expectations with a standalone net profit of ₹2,040.51 crore for the quarter ended March, an increase of nearly 50% over the number of ₹1,361.37 crore from the previous year.

The lender’s net interest income totaled ₹4,669.46 crore, up 17% over the previous year.

n Q4FY23, the bank’s total income increased 16% year-on-year to ₹6,823 crore, while its other income increased 13% on year to ₹2,514 crore.

In comparison to the corresponding quarter last year, the lender’s net interest income (NII) increased 17% to ₹4,669 crore for Q4FY23.

Provisions (apart from taxes and contingencies) for IndusInd Bank decreased by as much as 29% to ₹1,030 crore during the March quarter. It was ₹1,461 crore over the same time period a year prior.

With both gross and net non-performing assets (NPAs) on the decline, the bank recorded a successful quarter in terms of asset quality. In the January-March period, the gross NPA ratio decreased to 1.98% from 2.06% sequentially and 2.27% in the year-ago quarter.

Updated: 24 Jun 2023, 05:35 PM IST