IndusInd Bank to issue GDRs worth Rs. 140 crores by March-end

The Hinduja Group-controlled IndusInd Bank is planning to raise around Rs. 140 crores through global depository receipts (GDR) by March 2007. The bank will issue close to 30 mn shares which will listed at the Luxembourg Stock Exchange. CLSA has been appointed as the lead manager to the issue. The fresh infusion of capital will bring the promoter holding down to about 28% from 31.3%. The foreign holding in the bank will increase to 25 % from about 17%. The GDR issue will help enable the bank to boost its capital adequacy ratio to 11.25% from 11.10%. It is also planning to raise Rs. 50 crores through issuance of lower Tier-II bonds. The post-issue paid-up capital of the bank will rise to Rs. 320 crores from Rs. 290 crores.

The capital raising will enable IndusInd to pursue new business lines like wealth management and asset reconstruction. It is also planning to expand its presence overseas by setting up an offshore banking unit in Singapore. At present, the bank has representative offices in Dubai and London.

Read more on IndusInd Bank in the article in Business Standard.

IndusInd Bank to raise Rs. 200 crores through GDRs; reports drop in net profit for 3rd consecutive quarter

IndusInd Bank will raise up to Rs. 190-200 crores through an issuance of global depositary receipts (GDR). This would lower the promoters’ stake holding in the bank to from 31.34% to 28%. It was also in talks with the ANZ Grindlays Group for a 5% placement. However the talks seem to have fallen out.

For the December quarter, the bank has recorded a 21% dip in its net profit to Rs. 21.6 crores, from Rs. 27.4 crores reported a year ago. IndusInd Bank has been reporting a substantial dip in net profits for the past three consecutive quarters. The sharp dip in the bank’s income from the securitization business, coupled with a rise in provisioning against NPAs, taxes and standard assets, took a toll on the bank’s earnings in the quarter under review. While net interest income was down 15.03% to Rs. 62.81 crores (Rs. 73.9 crores), income from non-interest streams was up 66% to Rs. 92.9 crores, vis-à-vis Rs. 55.98 crores earned a year ago. Operating profit of the bank rose by 57% to Rs. 69.8 crores, up from Rs. 44.5 crores.

Article in The Economic Times.