IndusInd Bank's profit before tax declines 72% to Rs 602.45 crore

The bank has got approval to raise Rs 3,288 crore through preferential issue of fully paid-up 62.8 million equity shares at a price of Rs 524
IndusInd Bank reported a 72 per cent fall in its pre-tax profit, to Rs 602.45 crore, in the first quarter, against Rs 2,160.34 crore in Q1FY20, due to additional provisioning for Covid. The lender’s net interest income rose 16.4 per cent year on year to Rs 3,309 crore. Its net profit plunged 68 per cent to Rs 460.4 crore, from Rs 1,432.3 crore a year ago. The bank has got approval to raise Rs 3,288 crore through preferential issue of fully paid-up 62.8 million equity shares at a price of Rs 524. This will augment the capital base of the bank by 125 basis points and take the capital adequacy ratio of the bank to 16.5 per cent. 
  
The shares have been allotted to investors, such as Route One, ICICI Prudential Life Insurance, Tata Investment Corporation, AIA Company, the promoters, and the holding company. Route One will put in Rs 935 crore, ICICI Pru Life Rs 560 crore, Tata Investment Rs 300 crore, and AIA Rs 410 crore, Hinduja Capital Rs 299 crore, and IndusInd International Holding will invest Rs 493 crore. Investment of the promoters will be locked in for three years and strategic investors will have a lock-in of one year. The lender made an additional provisions of Rs 920 crore in the June quarter due to Covid, taking the total provision to Rs 1,203 crore. The moratorium book of the lender has shrunk to 16 per cent at the end of June, against 50 per cent during April.




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