By Malvika Gurung
Investing.com -- Shares of the Hinduja group-owned lender IndusInd Bank (NS: INBK ) surged 5% to Rs 927 apiece at 2:07 pm on Wednesday, after declining about 15% in the last eight sessions. At 2:07 pm on Wednesday, the banking stock was trading as the top gainer in Nifty 50 and Sensex.
This comes on account of reports stating that the Hindujas would increase their stake in the financial company from the current 16.5% to 26% after the central bank RBI eased ownership rules for the country’s private sector banks.
On Friday, RBI issued a notification in line with some recommendations of its working group, which allows promoters to increase their stake in private banks up to 26%, and non-promoter stake to 10%.
IndusInd International Holding Ltd, the entity led by Hinduja Global Solutions Ltd (NS: HGSL ) is the promoter of IndusInd Bank, and will increase their holdings in the lender to 26%, and is reported to be raising more than a billion dollars, as per ET.
Increasing holdings in the lender would lead to enhanced financial strength for the bank and protection for clients, stated IIHL Chairman Ashok Hinduja. Sharekhan has continued to maintain a ‘Buy’ call on the stock with a TP of Rs 1,340, which is a premium of 44.5% compared to its present value.
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