IndusInd Bank promoters get in-principal approval to raise stake in co – CEO

BENGALURU (Reuters) – Promoters of India’s IndusInd Bank have received in-principal approval from the country’s central bank to increase their stake in the private lender, the bank’s chief executive said on Monday.

The promoters have filled out a form to increase the stake and the due diligence process takes about 90-180 days as per the Reserve Bank of India (RBI) norms, CEO Sumant Kathpalia said during a call with media after reporting quarterly results.

And while Kathpalia did not disclose details, he added that the form was filed with the RBI about two to three weeks ago.

IndusInd’s promoters currently hold a stake of about 16.5% in the bank. In 2021, the RBI raised the cap on the stake promoters can hold in a bank to 26% from 15%.

IndusInd International Holdings Ltd, an entity belonging to promoters Hinduja Group, have a 12.57% stake in the lender, while IndusInd Ltd has a 3.93% stake as per the company’s latest shareholding pattern available with the Indian stock exchange BSE.

The promoters were looking to hike their stake in the lender up to 26%, multiple local media had reported in February.

Earlier in the day, the bank reported a bigger-than-expected rise in fourth-quarter profit, helped by strong loan growth and a drop in provisions for bad loans.

(Reporting by Siddhi Nayak in Mumbai and Nallur Sethuraman in Bengaluru; Editing by Janane Venkatraman)