IndusInd Bank Extends Gains, Surges Another 15% On UBS Principal Deal

Shares of IndusInd Bank continued their rally and climbed as much as 15% on the NSE touching intra-day high of Rs. 441.40 per share as against previous close of Rs. 383.85.

IndusInd Bank Extends Gains, Surges Another 15% On UBS Principal Deal

Singapore-based investment banking entity UBS Principal Capital Asia has acquired 0.9% stake in private sector lender IndusInd Bank on April 7. As per April 7 bulk deal data available on the NSE, UBS bought 53.83 lakh equity shares of the bank at Rs 367 per share.

The financial consideration of the deal amounted to Rs 197.55 crore and this could be one of reasons fuelling rally in the stock price.

In the previous session on April 7, 2020, IndusInd Bank was the top gainer among Nifty stocks and surged nearly 23% to end at Rs. 383.85 on the NSE.

In comparison to benchmark Nifty Bank index which lost close to 45%, Nifty Private Bank which fell 49% during the last 3-month period, the stock of IndusInd Bank cracked steeply by 80% owing to concerns around asset quality at the bank and strength of funding franchise.

Also, the bank post Yes Bank crisis, faced immense pressure on its deposits which saw considerable withdrawal.

Now, with the covid 19 pandemic as businesses have come to standstill there is again a risk to bank's asset quality as well as growth in some of the business verticals.

The stock of IndusInd Bank at 11:20 am quoted higher by 8.95% or Rs. 34.35 at Rs. 418.20 on the NSE.

GoodReturns.in