It is said that the three years of long waiting is over for the Hindujas. As the promoter of IndusInd Bank, IndusInd International Holdings Limited is said to have received the go-ahead from the banking regulator to increase its stake in the bank to 26 percent from the current 15.16 percent.
Sources with knowledge of the matter say that there is also a formal approval from the Reserve Bank of India for the same.
The go-ahead given by the regulator is in line with the recently introduced Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Guidelines 2023, making IndusInd Bank the first instance in which its promoter increases its equity interest to 26 percent The instructions were issued on January 16, 2023, replacing previous guidelines that limited the voting rights of promoters in a bank to 15 percent.
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Consequently, the Hindujas are likely to deploy Rs 8,000-10,000 crore to increase their stake in the bank. The promoters are currently in the process of raising the required capital and the exercise can conclude in about a month, according to the sources. “Between June and September, the promoters are expected to increase their shareholding in the bank,” said one of the two sources cited above. For IndusInd Bank, with its sights set on acquisitions to expand its loan book, the capital injection could give it much-needed ammunition to pursue opportunities.
However, it is known that as a precondition to increasing its stake, IndusInd International Holdings has been asked to de-encumbrance its current shareholding in the bank. According to the shareholding of the December quarter, 45.48 percent of the shares have been pledged.
An email sent to the bank remained unanswered until the time of publication.
On March 6, 2020, the bank had hinted to stock exchanges that its promoters have plans to acquire additional shares in the bank on the open market within the overall promoter share holding limit prescribed for private banks.
