IndusInd Bank stock crash: Societe Generale sold 39 lakh shares in bulk deal

Shares of IndusInd Bank crashed 20% intra day in the previous session after the lender reported its Q2 earnings and stake sale by Societe Generale, Europe's leading financial services group. According to NSE data,Paris-headquartered Societe Generale offloaded 39.30 lakh shares or 0.50 per cent stake in the lender in a bulk deal. The price of the share sale was Rs 1,070.61 apiece, taking the transaction value to Rs 420.80 crore.

On the other hand, Societe Generale purchased 29,725 shares at an average price of Rs 1,083.79 per piece, as per NSE data. The deal value was Rs 3.22 crore.

The earnings were weakest among the peers and fell below estimates. However, most brokerages maintained their buy call on the banking stock. 

The lender reported a 40 percent fall in net profit for the September 2024 quarter. Profit slipped to Rs 1,331 crore in Q2, missing Street estimates. Profit was hit by a surge in provisions for bad loans in the last quarter. In the September 2023 quarter, the lender reported a profit of Rs 2181 crore. 

Provisions and contingencies climbed 87% to Rs 1,820 crore in Q2 against Rs 974 crore reported in the same quarter previous year.

IndusInd Bank stock closed 18.56% lower at Rs 1041.55 on BSE. Market cap of the lender fell to Rs 81,136 crore on Friday.