IndusInd Bank Shares Gain On Getting RBI Nod For Mutual Fund Business
The approval encompasses the investment of equity capital into the new subsidiary, pending the fulfilment of additional conditions outlined in the RBI's letter, the bank said.
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Shares of IndusInd Bank Ltd. gained 2.33% on Tuesday after the Reserve Bank of India granted approval to the bank for setting up a wholly owned subsidiary to undertake the asset management business of mutual funds.
The approval encompasses the investment of equity capital into the new subsidiary, pending the fulfilment of additional conditions outlined 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.
The stock rose as much as 2.48% to 1,381.05 apiece, the highest level since Aug. 7. It pared gains to trade 2.43% higher at Rs 1,380.30 apiece as of 11:05 a.m. This compares to a 0.50% advance in the NSE Nifty 50 Index.
The stock has risen 0.22% in the last 12 months. Total traded volume so far in the day stood at 0.45 times its 30-day average. The relative strength index was at 47.38.
Out of 49 analysts tracking the company, 43 maintain a 'buy' rating, five recommend a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 27.1%
