IndusInd Bank Faces Declining Share Prices After Acquiring RBS

Published By : 27 Jul 2015 | Published By : QYRESEARCH

The shares of IndusInd bank declined by 1.07% and at 10:30 am IST on BSE index. It dropped to Rs. 946. The decline was observed after the company announced that it has completed the acquisition of the diamonds and jewelry business of Royal Bank of Scotland (RBC) in India.

Over the day, the share of IndusInd bank dropped the lowest till Rs. 945 and touch the highest at Rs. 951.70. On April 15, 2015, the stock reported a record high of Rs. 966.90, while on Aug 08, 2015, the stock registered the lowest price in 52 week at Rs. 534.15 per share.

Over the previous one month closed on July 24, 2015, the stock rose at 13.3% outperforming the market, which reported just 1.38% increase. The bank possess a total equity capital of Rs 582.49 Crore, having a face value of Rs. 10 per share.

The bank stated in the announcement that it has completely acquired the diamond and jewelry business of Royal Bank of Scotland in India and have migrated entire portfolio of the RBS business to the bank. The loan portfolio that IndusInd has acquired from RBS is approx. Rs. 4100 Crore. On April 10, 2015, the bank had announced the acquisition agreement it entered into with the diamond and jewelry financing business and the related deposit portfolio of RBS in India, which was then subjected to the regulatory approval.

The net profit of IndusInd bank increased 24.7% to Rs. 525.04 Crore in the first quarter of 2015, whereas the total income reached to Rs. 3447.84 crore with 20% rise over the first quarter of 2014.
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