SBI Mutual Fund to acquire up to 9.99% stake in Indusind Bank

The Reserve Bank of India (RBI) has granted permission to SBI Mutual Fund to purchase a stake of up to 9.99% in IndusInd Bank, as per an official filing by the latter. SBI Mutual Fund has been directed to complete this acquisition by October 10, 2024. It is mandated to ensure that the total ownership in the bank never surpasses 9.99% of the paid-up share capital or voting rights at any given time.

The RBI's approval is contingent on adhering to relevant provisions of the Banking Regulation Act, 1949, and the RBI's guidelines on the acquisition and possession of shares or voting rights in banking entities. IndusInd Bank displayed robust financial performance in the first quarter of 2023-24, recording a net profit of Rs 2,124 crore, a 32% surge from Rs 1,603.29 crore in the previous year's June quarter. 

The bank's net interest income also grew to Rs 4,867.11 crore, marking a 17.98% increase compared to the year-ago period's Rs 4,125.20 crore. IndusInd Bank's shares closed at Rs 1,421.15, showing a marginal 0.01% rise ahead of the announcement on Wednesday, while the benchmark BSE Sensex recorded a 0.60% increase. In May, the RBI had granted approval to SBI Funds Management—a joint venture between the State Bank of India and France’s Amundi—to acquire a 9.99% stake in HDFC Bank, with a recommendation to do so within the next six months.