IndusInd Bank Stake Sale: Societe Generale Offloads Shares Worth Rs 421 Crore

Financial services company Societe General on Friday offloaded shares worth Rs 420.80 crore in IndusInd Bank Ltd. through open market transactions.

The Frace-based company has sold 39.90 lakh shares of the private lender, representing a 0.50% stake at Rs 1,070.61 per share, according to data available on the National Stock Exchange.

Societe Generale also bought 29,725 shares at an average price of Rs 1,083.79 per piece.

The details of the other buyers were not available on the exchange.

IndusInd Bank's net profit for the three months ended September fell 39% on a yearly basis to Rs 1,325 crore due to higher provisions. The analysts tracked by Bloomberg had estimated the net profit at Rs 2,214 crore. That came after its provisions for the quarter rose 73% quarter-on-quarter to Rs 1,820 crore. On a yearly basis, provisions rose by 87%.

That came after its provisions for the quarter rose 73% quarter-on-quarter to Rs 1,820 crore. On a yearly basis, provisions rose by 87%.

The bank's total advances rose 13% year-on-year to Rs 3.57 lakh crore. Unsecured retail loans shrank by 6% quarter-on-quarter. Microfinance loans especially shrank by 5% quarter-on-quarter to Rs 32,723 crore.

The growth in unsecured loans was slower as the bank saw higher delinquencies in the portfolio. Outstanding slippages on the microfinance book stood at Rs 2,259 crore, higher than Rs 1,988 crore in the June quarter. Delinquencies in the microfinance book are prominently from Bihar, Jharkhand and Maharashtra.

Share price of IndusInd Bank plunged nearly 19.89% Friday— the worst session since March 2020, after the 10% and 15% lower circuit was revised. The stock closed 18.63% lower at Rs 1,041.60 per share. This compares with a 0.28% decline in the benchmark Nifty 50. It has risen 26.27% in the last 12 months and 34.85% year-to-date.

Of the 50 analysts tracking the company, 30 have a 'buy' rating on the stock, 10 suggest a 'hold' and two has a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 47%.