Indusind Bank shares jump over 7% on fund raising plan1 min read . Updated: 29 Jul 2020, 12:27 PM IST
On the NSE, Indusind Bank stock gains 7.17% to Rs564.75. And it surges by 6.99% to Rs563.75 on the BSE
NEW DELHI : Indusind Bank shares on Wednesday jumped over 7% after the private sector lender announced a Rs3,288 crore fund raising plan.
On the NSE, Indusind Bank stock gained 7.17% to Rs564.75. And it surged by 6.99% to Rs563.75 on the BSE. The stock was the top gainer in the Sensex and Nifty pack during morning trade.
India’s fifth largest private sector lender on Tuesday announced that its board has approved a Rs3,288 crore fund raising plan through a preferential issue. This is the first time in over four years that the bank would be raising the funds.
Under the proposed fund raising plan, Indusind Bank will allot 6.275 crore equity shares at a price of Rs524 per share to a set of marquee investors and the promoters, subject to shareholders and other necessary approvals.
The Hinduja Group-promoted Indusind Bank will use the capital to invest in liabilities and asset franchise, technology and infrastructure platforms, to expand reach, product offerings and to improve customer experience.
The lender on 25 August will hold an extraordinary general meeting of its shareholders to consider the preferential issue.
By 11:45 am, shares of Indusind Bank were trading at Rs550.25, up 4.42%, on the NSE; and at Rs549.80, 4.35% higher, on the BSE.
Indusind Bank on Tuesday reported 67.8% fall in its first quarter net profit at Rs460.64 crore. The profit was dragged down by a five-fold rise in provisions for bad loans and special capital allocations for the Covid-19 pandemic.
However, its net interest income grew 16.4% to Rs3,309.2 crore in the June quarter of fiscal year 2021.
Indusind Bank’s total provisions, comprising specific, floating, general and standard assets provisions, were 96% of the gross non-performing assets (NPAs).