IndusInd Bank is reportedly assessing investor interest for a potential share sale to institutional buyers, according to the Economic Times, as the lender seeks to regain market confidence following accounting discrepancies in its forex derivatives book.
IndusInd Bank, the report claimed citing sources, has begun informal discussions with potential investors for a possible qualified institutional placement (QIP).
The effort comes as senior management aims to reassure stakeholders about the bank’s financial health after internal issues led to the departure of several top executives.
“The bank is well capitalised. It has also cleaned up its book,” the source quoted in the report said. “If at all, it may be considering raising ‘confidence capital’ from investors.”
The lender is reportedly working with global banks, including Citibank, to identify interest in a potential fundraising round. While Citibank declined to comment, IndusInd Bank dismissed the report as “speculative” and “factually inaccurate.”
If the QIP proceeds, the bank’s promoter, the Hinduja Group—holding 15.8% as of September 30—may participate to maintain its shareholding. LIC, which owns 5.11%, is also expected to invest.
The report notes favorable market conditions for such a move. Shares of IndusInd Bank have risen 7.5% since the August appointment of Rajiv Anand, former deputy MD of Axis Bank, as CEO and MD for a three-year term. The stock closed 1.2% lower at ₹829.45 on Thursday.
Though the bank’s capital levels are above regulatory requirements—tier-1 at 15.21% and total capital adequacy at 16.51%—analysts say it operates close to its internal buffers. New capital could bolster the bank’s cushion ahead of anticipated credit growth, particularly in retail and commercial vehicle segments.
In July, the board approved raising up to ₹30,000 crore, including ₹10,000 crore through equity instruments. The bank last accessed equity markets in 2020 and 2021 through a preferential issue and promoter warrant conversion.
