Highlights
- IndusInd Bank officially denies any ongoing discussions with strategic partners.
- Shares jumped 3 percent to Rs 873 following initial reports of investor search.
- Hinduja Group urges regulators to raise promoter stake cap from 15 to 40 percent.
"There is no discussion of this nature underway with anyone in the bank," told the bank. The Economic Times had quoted Ashok Hinduja, chairman of IndusInd International Holdings (IIHL), stating that the UK-based Hinduja Group was seeking a strategic partner with global expertise to acquire a minority stake.
The report sparked a sharp rally in IndusInd Bank shares, which rose more than 3 percent to Rs 873 (£7.28), reaching their highest level in nearly three weeks.
Despite the bank's denial, Hinduja maintained his position on regulatory reforms. He told the ET that private bank promoters should be allowed to hold stakes up to 40 per cent, arguing that capital restrictions harm institutional strength. "When licences were given in 1994, we were allowed to hold 40 per cent," he noted, questioning why the current cap stands at 15 percent.
The lender has been working to restore confidence following accounting discrepancies revealed earlier this year. IndusInd Bank expects to grow in line with India's banking sector next year, its chief executive told Reuters last month, following an organisational overhaul. The bank currently maintains a capital adequacy ratio exceeding 17 percent.
Hinduja expressed confidence in the bank's recovery under new managing director Rajiv Anand, stating the institution would "come back" within a few months or quarters. IIHL has outlined ambitious plans to expand its BFSI portfolio to $50 bn by 2030, including potential moves into general and life insurance segments.
IndusInd Bank shares have gained approximately 10 percent over the past month, though they remain down nearly 11 percent year-to-date.
