IndusInd Bank today clarified that there is “no specific transaction under consideration by the board at this stage” in reply to reports that the lender is looking to raise as much as $500-750 million from marque global investors.
“The Bank is well capitalised with Tier 1 ratio of 15% and Capital Adequacy Ratio of 15.43% (with 9M FY20 profit). There is no specific transaction under consideration by the Board of the Bank at this stage. We stay committed to evaluate alternatives from time to time that may benefit our stakeholders,” the private bank said in an communication to exchanges.
The Hinduja family backed IndusInd Bank also reiterated that its promoters have applied to the RBI for increase in their permissible holdings to 26%, from the current level of about 15%.
“You may have noted that the Promoters of the Bank have applied to the Reserve Bank of India for increasing their permissible holdings to 26%. On a fully diluted basis the Promoters of the Bank have a holding of 14.68% which is very close to the current regulatory cap of 15%,” IndusInd Bank said.
IndusInd Bank shares were down 6% in afternoon trade today.
IndusInd Bank on Wednesday said its promoter IndusInd Ltd, Mauritius has fully repaid the loan to Citibank London and is now a debt-free firm. Last month, the bank had informed exchanges about pledging of 23.8 million equity shares equal to 3.43% of current paid up capital of IndusInd Bank owned by IndusInd Ltd in favour of Citibank London against borrowing arrangements availed in September 2016.
“We hereby wish to confirm that IndusInd Ltd, Mauritius (Promoters of IndusInd Bank) have fully liquidated/repaid the said borrowing arrangements and security trustees will be releasing the pledged shares this day(April 1),” it said in a communication to exchanges.
