MUMBAI : IndusInd Bank and its promoter the Hinduja Group have initiated talks with sovereign wealth funds and pension funds, including Canada’s CPPIB and Singapore’s GIC Pte Ltd, to raise as much as $500 million.
This is aimed at bolstering investor confidence amid deterioration of the private lender’s balance sheet and flight of deposits after the Yes Bank Ltd fiasco.
More than two-thirds of the bank’s market value has been wiped off since the beginning of March. The stock last traded at ₹313.25 on Friday. “IndusInd Bank has been one of the most impacted banks in the covid-19 market rout.
With promoter shareholding almost close to the maximum cap defined by the Reserve Bank of India, they have to bring in external investors to pump in