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.