However, he raised concerns over the impact on the market cap. “My concern is how the market has taken so much so that over Rs 16,000 crores, over $2 billion just in two hours, it has impacted the market cap. The market situation has gone so bad,” he added.
The promoter reaffirmed his commitment to supporting the bank, recalling past support during the Covid-19 crisis. Hinduja emphasised that the promoter group remains ready to inject capital, including through additional warrants, and is awaiting regulatory approval to increase its stake from 15% to 26%.
Despite the market reaction, he assured that the bank’s capital adequacy remains above 15% and is not a concern.
Shares of IndusInd Bank were trading at 654.25/piece as of 2:49 pm.
Concerns over management
Addressing concerns over management, Hinduja expressed full trust in the bank’s leadership, including MD Sumant Kathpalia, but deferred decisions on tenure extensions to the Reserve Bank of India (RBI). He also clarified that while the CFO position has been a topic of speculation, Arun Khurana currently holds the role and is also the deputy CEO and board member. On concerns over pledged shares, Hinduja explained that IndusInd International Holdings has over 600 shareholders, who expect business expansion, and occasional pledging of shares is a normal practice for raising funds. Addressing investor panic, he reassured that the bank’s financial health remains strong and that the promoter group stands firmly behind it.
“I can only say that they should not panic. The bank’s balance sheet is strong. The promoter’s full support is behind. And these are only initial crisis, which is a shock, which should be not taken. But because amount is not great, amount can be absorbed in this year itself,” said Hinduja.
Hinduja on RBI approval
Regarding the pending RBI approval to increase the promoter’s stake, Hinduja confirmed that all regulatory processes have been followed, and the decision now rests with the regulator.
“I cannot question the regulator why there is delay. But I can only tell you that we had received the letter that as per the policy, yes, you can go from 15% to 26%. Please follow the process. We have followed the process. There is form A which we have to fill up, which has already been done. It has been sent, various correspondences have happened. And we have fulfilled all those queries which they have. So, now it is in the hands of the regulator, we will appreciate as and when they think is the right time to provide. We will take it,” he noted.
On the Reliance Capital acquisition, he clarified that it is an IIHL investment through the insolvency resolution process and not linked to IndusInd Bank, though the bank may act as a distributor for the insurance business.
With over Rs 5,600 crore already credited for the acquisition and the final transaction expected to close soon, Hinduja reiterated that IndusInd Bank remains financially stable, and investors should not panic over temporary market fluctuations.
