IndusInd Bank shares jump over 4% on takeover news by Kotak Bank; promoters deny, call baseless

IndusInd Bank share price jumped over 4 per cent to Rs 633 apiece on BSE, after a Bloomberg report suggested that Kotak Mahindra Bank is exploring a takeover of IndusInd Bank Ltd. While Kotak Mahindra Bank shares were trading volatile. IndusInd Bank has, however, denied the takeover news, calling it baseless and untrue. IndusInd Bank shares were the top BSE Sensex gainer in otherwise weak trade on Monday. “The promoter of IndusInd Bank, IndusInd International Holdings Limited (IIHL), completely denies the said rumour and considers it malicious, untrue and baseless,” it said in a press release. IIHL is promoted by the Hindujas and a broad base of other successful NRIs from the overseas Indian diaspora. “They reiterated their full support to the IndusInd Bank, now and always,” it added.

Around 11 AM, IndusInd Bank shares were trading 2.56 per cent higher at Rs 623 apiece, as compared to a 0.18 per cent fall in the S&P BSE Sensex. IndusInd Bank shares have rallied nearly 170 per cent from March low of Rs 235.60 apiece. While Kotak Mahindra Bank shares were trading flat with a negative bias at Rs 1,381.95 apiece on BSE. It has managed to jump 40 per cent since March.

IndusInd Bank in its press denial said that whenever financial crises have impacted the Indian economy and its financial institutions, the promoter of the IndusInd Bank has positively intervened to support and improve the financial position of the bank. “It has a solid track record of facilitating the acquisitions in 2002 of IndusInd Enterprises and Finance Ltd (IEFL) by the bank, followed by another one of Ashok Leyland Finance Ltd (ALF) in 2004,” it said. 

IndusInd International Holdings Limited and IndusInd Limited said that amongst the nine original licensees (4 institutional and 5 private) that were allowed to set up banking operations in 1994, IndusInd Bank is the only privately promoted bank that successfully continues its operations because of the promoter support. “The Promoter reaffirms its unstinted support to the Indusind Bank,” it added.