IndusInd Bank share rises over 2% after LIC gets RBI nod to raise stake

Share of private sector lender IndusInd Bank rose over 2% today after insurance behemoth Life Insurance Corporation (LIC) received the approval of Reserve Bank of India to raise its stake in the lender.

 LIC has been allowed to raise its stake to 9.99 per cent of the total issued and paid-up share capital in Hinduja-owned bank from the current 4.95 per cent.

The banking share rose 2.14% to Rs 966.60 against the previous close of Rs 946.30 on BSE.

The stock trades higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has gained 5.66% since the beginning of this year and risen 3.27% in one year. However, the stock has lost 8.39% in a month.

Total 1.32 lakh shares of the lender changed hands amounting to turnover of Rs 12.83 crore on BSE. The share hit 52-week high of Rs 1,241 on October 28, 2021 and 52-week low of Rs 788.60 on January 28, 2021 Market cap of the lender rose to Rs 72,289 crore on BSE.

The approval to LIC will be valid for a period of one year till December 8, 2022.

"We are pleased to inform you that the Bank has received [intimation] from the RBI on December 9, 2021 that it has granted its approval to Life Insurance Corporation (LIC), shareholder of the Bank, who holds 4.95 per cent of the total issued and paid-up capital of the Bank," the bank said in the filing.

It further mentioned this approval is in compliance with the Master Direction on 'Prior Approval for Acquisition of Shares or Voting Rights in Private Sector Banks' dated November 19, 2015, Master Direction on 'Ownership in Private Sector Banks' dated May 12, 2016, regulations of the Securitires and Exchange Board of India, the Foreign Exchange Management Act, 1999 and other guidelines/regulations and applicable laws.