Indusind To Rope In Ally

IndusInd Bank is planning to rope in an international strategic partner as to reduce promoter stake from over 50 per cent to the Reserve Bank of India-prescribed level of 40 per cent.

The bank's executive vice-president Fali F Forbes told reporters that a proposal mooted by IndusInd for a reverse merger with IndusInd Mauritius was turned down by RBI last year.

"In the present situation, when the capital markets are not doing well, it is difficult for all promoters to reduce their holding," he said.

IndusInd has also taken over assets from some other banks and institutions as part of the growth strategy. Forbes refused to divulge any amounts but said that the bank would continue with the strategy if good assets are on offer.

The bank is planning to increase its focus on the retail business, which accounted for about 20 per cent of the bank's assets worth 4,200 crore at the end of March 31, last year. Forbes said that the bank was well placed to take advantage of the retail boom.

The bank had non performing assets of about 5.2 per cent at the end of March 2001, compared to about 5.9 per cent at the end of March 2000.

The bank has also won a favourable verdict from the Debt Recovery Tribunal on a recovery suit of Rs 24.4 crore from Stock Holding Corporation of India Ltd concerning last year's stock scam. The DRT has directed SHCIL to furnish security equivalent to the amount.