IndusInd Bank jumps 4% as promoters reaffirm support to bank

NEW DELHI: Shares of IndusInd Bank climbed 4 per cent in Monday's trade after the promoters reaffirmed their 'unstinted support' to the bank while denying any talks with Kotak Mahindra Bank for a possible merger.

In a filing to BSE, the bank said: "Whenever financial crises have impacted the Indian economy and its financial institutions, the promoter of the IndusInd Bank has positively intervened to support and improve the financial position of the bank," the bank said.

Following the statement, the stock rose 4 per cent to hit a high of Rs 633 on BSE.

It said that its promoter would continue to support Indusind Bank’s initiatives to grow inorganically should any such opportunities arise on the horizon in the future.

"It is worth recalling that amongst the 9 original licensees (4 institutional and 5 private) that were allowed to set up banking operations in 1994, IndusInd Bank is the only privately promoted bank that successfully continues its operations because of the promoter support," it said.

The bank stressed the Mauritius-based promoter, IndusInd International Holdings Ltd, is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora, who reiterated their full support to the IndusInd Bank, now and always.

"It has a solid track record of facilitating the acquisitions in 2002 of IndusInd Enterprises and Finance by the bank, followed by another one of Ashok Leyland Finance Ltd (ALF) in 2004. Very recently in July 2019, it supported the acquisition of Bharat Financial Inclusion Ltd (BFIL) by the Indusind Bank," it noted.