IndusInd Bank jumps 4% as Goldman Sachs buys stake; stock up 12% in 3 days

Shares of IndusInd Bank were trading higher for the third straight day, up 4 per cent to Rs 442 on the National Stock Exchange (NSE) after Goldman Sachs Singapore Pte picked up shares worth over Rs 176 crore in the private sector lender through an open market transaction.

In the past three trading days, the stock has risen 12 per cent as compared to 2.3 per cent decline in the benchmark Nifty 50 index.

According to the bulk deal data on the NSE, Goldman Sachs (Singapore) Pte-ODI bought 4.1 million shares, representing 0.65 per cent stake of IndusInd Bank, at an average price of Rs 430 per share on Wednesday. The name of the sellers not ascertained immediately.

Earlier, on April 7, Singapore-based investment banking firm UBS Principal Capital Asia bought 5.38 million shares, or 0.85 per cent stake, in the private lender. As per bulk deal data available on the NSE, UBS acquired the bank's shares at Rs 367 per share.

With the past three days' gain, IndusInd Bank's stock price has rallied 87 per cent from its 52-week low level of Rs 235.55, touched on March 20, 2020. It had touched a 52-week high of Rs 1,824 on April 18, 2019.

Meanwhile, Moody’s had put IndusInd Bank’s domestic and foreign currency issuer ratings at “Baa3/P-3”, under review for downgrade. It also placed the bank’s baseline credit assessment (BCA) at “ba1” and adjusted BCA under review for downgrade.

“These rating actions come in the backdrop of downgrading the outlook on the Indian banking system from “stable” to “negative”.

This change in outlook is because of the adverse fallout of the coronavirus (Covid-19) outbreak and rise in defaults, which add to the risks of banking entities,” Moody''s Investors Service said on April 3, 2020.

Moody’s noted downside risks to asset quality amid the deteriorating macro environment and financial market volatility. It said that IndusInd Bank's loan portfolio includes a higher proportion of micro finance and vehicle finance loans than its peers, which are at high risk of being negatively impacted by the economic shock.

At 10:06 am, IndusInd Bank had partially erased its early morning gains and was trading 1 per cent higher at Rs 429, against 0.5 per cent decline in the Nifty 50 index. A combined 8.7 million shares have changed hands on the counter on the NSE and BSE so far.