IndusInd Bank Receives RBI Approval For Mutual Fund Business

The Reserve Bank of India granted approval to IndusInd Bank Ltd. on Monday for setting up a wholly owned subsidiary to undertake the asset management business of mutual funds.

The approval includes the investment of equity capital into the new subsidiary, subject to additional conditions specified in the RBI's letter, according to an exchange filing.

The private sector bank's consolidated net profit rose 2% to Rs 2,171 crore in the quarter ended June, missing analysts' estimates.

On July 19, the private lender received the board's approval to raise as much as Rs 30,000 crore via the issuance of debt securities and equity sales.

Shares of IndusInd Bank closed 1.3% lower at Rs 1,347.7 apiece on the BSE, compared to a 0.02% fall in the benchmark Sensex.