IndusInd Bank is trading higher by 3 per cent to Rs. 703 on National Stock Exchange (NSE) on reports that the Foreign Investment Promotion Board (FIPB) has allowed the bank to raise foreign institutional investors (FII) limit to 74 per cent.
The stock opened at Rs. 692 and touched a record high of Rs. 709 on NSE. A combined 794,221 shares changed hands on the counter till 1130 hours on NSE and BSE.
IndusInd Bank’s proposal seeking increase in foreign investment in the bank to 74 per cent has been cleared by the Foreign Investment Promotion Board (FIPB), a multi-department panel headed by Finance Secretary.
The amount of fund flow would depend on when the actual transaction takes place in case of the bank, the report said.
Citing a release by the government the report said, the bank sought “a specific request to grant post-facto approval for increase in foreign holding from 68.51 to 72.07 per cent on June 30, 2014.”
The government (on October 24) said based on the recommendations of FIPB, it approved 20 proposals (including Bharati Shipyard (stock up 6 per cent), Solar Industries (up 0.15 per cent), Fresenius Kabi, Intas Pharma etc) of foreign direct investment amounting to approximately Rs 988.3 crore.
Meanwhile, the private sector lender’s net profit grew by 30.3 percent year-on-year to Rs 430.2 crore in the quarter ended September 2014 led by strong other income and lower provisions. Net interest income, the difference between interest earned and interest expended, rose by 19 percent to Rs 833 crore in July-September quarter compared to Rs 700 crore in the same quarter last year while other income (non-interest income) shot up 34 percent to Rs 558.3 crore from Rs 416.7 crore during the same period.