Home >Markets >Stock Markets >IndusInd Bank jumps 10% on report US hedge fund may raise stake in lender

Mumbai: Shares of IndusInd Bank jumped 9.81% on reports US-based hedge fund Route One Investment Company is initiating talks to increase its stake in the bank.

At 12:40 pm, IndusInd Bank was trading at 566.30, up 7.62% from its previous close, while the benchmark index, Sensex lost 0.10% to 36639.27.

According to Moneycontrol, Route One Investment Company has initiated talks to increase its stake in IndusInd Bank, which has been looking to raise capital. Route One Investment currently holds 5.41% stake in IndusInd Bank through two entities. The plan is to hike its stake to around 9.9% via a preferential allotment of shares, the news portal reported.

Other investors too could join the fundraise and the bank could dilute up to 10% stake for this, the report added.

IndusInd Bank promoters, too, have in the past evinced interest to increase their stake to up to 26% to infuse capital into the bank. Promoters hold little under 15% stake in the bank.

From the beginning of the year, shares of IndusInd Bank have lost 63% against a fall of 11% in Sensex. From March lows, the stock gained 140% whereas Sensex was up 43%.

The bank's net advances stood at 2 trillion as on 30 June against 1.94 trillion a year ago. Deposits stood at 2.12 trillion, up 6% from a year ago. CASA ratio stood at 40.2% as on 30 June as against 43% a year ago and 40.4% as on 31 March.

The bank's net profit fell 16.20% to 301.84 crore for the quarter ended 31 March against 360.10 crore for the same quarter last year. Total income rose 21.30% to 9158.57 crore from 7550.43 crore a year ago.

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