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IndusInd Bank spurts on buzz Route One may hike stake

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Capital Market
Last Updated : Jul 08 2020 | 12:31 PM IST

IndusInd Bank soared 8.19% to Rs 569.30 on BSE on reports that the US-based hedge fund is initiating talks to increase its stake in the bank.

According to the media reports, US-based hedge fund Route One Investment Company has initiated talks to increase its stake in IndusInd Bank, which is exploring multiple options to strengthen its balance sheet and raise capital.

Route One Investment Company currently holds 5.41% stake in IndusInd Bank through two entities. The plan is to hike it to around 9.9% via a preferential allotment of shares, reports added.

Shares of IndusInd Bank have risen 16.83% in three consecutive sessions from a recent closing low of Rs 487.25 on Friday (3 July).

The bank announced on 5 June that its net advances stood at Rs 2,00,357 crore as on 30 June 2020, up 4% against Rs 1,93,520 crore as on 30 June 2019. Deposits stood at Rs 2,11,970 crore as on 30 June 2020, up 6% from Rs 2,00,586 crore as on 30 June 2019. CASA ratio stood at 40.2% as on 30 June 2020 as against 43% as on 30 June 2019 and 40.4% as on 31 March 2020.

The bank's consolidated net profit fell 12.32% to Rs 315.25 crore on 21.30% rise in total income to Rs 9,158.80 crore in Q4 March 2020 over Q4 March 2019.

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

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First Published: Jul 08 2020 | 11:55 AM IST

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