The promoter of IndusInd Bank, IndusInd International Holdings Ltd (IIHL), a Mauritius-based company denied a report that claimed Kotak Mahindra Bank was exploring to take over the bank.
In a statement sent to CNBC-TV18, IndusInd Bank said, "The promoter of IndusInd Bank, IndusInd International Holdings Limited (IIHL), completely denies the said rumour and considers it malicious, untrue and baseless. IIHL is promoted by the Hindujas and broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always."
The statement continued, "Whenever financial crises have impacted the Indian economy and its financial institutions, the promoter of IndusInd Bank has positively intervened to support and improve the financial position of the bank. It has a solid track record of facilitating the acquisitions in 2002 of IndusInd Enterprises and Finance Ltd (IEFL) by the bank, followed by another one of Ashok Leyland Finance Ltd (ALF) in 2004. Very recently in July 2019, it supported the acquisition of Bharat Financial Inclusion Ltd (BFIL) by IndusInd Bank.
"The promoter would continue to support IndusInd Bank's initiatives to grow inorganically should any such opportunities arise on the horizon in the future. It is worth recalling that amongst the 9 original licensees (4 institutional and 5 private) that were allowed to set up banking operations in 1994, IndusInd Bank is the only privately promoted bank that successfully continues its operations because of the promoter support."
Meanwhile, sources at IndusInd Bank said that the management is not aware of any deal talks with Kotak Mahindra Bank and the promoters have already denied the merger report.
IndusInd Bank will be the "acquirer" and not the "acquiree" if any future merger is considered, the source added.
However, Kotak Mahindra Bank said, "We have no comment to offer."
In a statement sent to CNBC-TV18, IndusInd Bank said, "The promoter of IndusInd Bank, IndusInd International Holdings Limited (IIHL), completely denies the said rumour and considers it malicious, untrue and baseless. IIHL is promoted by the Hindujas and broad base of other successful NRIs from the overseas Indian diaspora. They reiterate their full support to the IndusInd Bank, now and always."
The statement continued, "Whenever financial crises have impacted the Indian economy and its financial institutions, the promoter of IndusInd Bank has positively intervened to support and improve the financial position of the bank. It has a solid track record of facilitating the acquisitions in 2002 of IndusInd Enterprises and Finance Ltd (IEFL) by the bank, followed by another one of Ashok Leyland Finance Ltd (ALF) in 2004. Very recently in July 2019, it supported the acquisition of Bharat Financial Inclusion Ltd (BFIL) by IndusInd Bank.
"The promoter would continue to support IndusInd Bank's initiatives to grow inorganically should any such opportunities arise on the horizon in the future. It is worth recalling that amongst the 9 original licensees (4 institutional and 5 private) that were allowed to set up banking operations in 1994, IndusInd Bank is the only privately promoted bank that successfully continues its operations because of the promoter support."
Meanwhile, sources at IndusInd Bank said that the management is not aware of any deal talks with Kotak Mahindra Bank and the promoters have already denied the merger report.
IndusInd Bank will be the "acquirer" and not the "acquiree" if any future merger is considered, the source added.
However, Kotak Mahindra Bank said, "We have no comment to offer."
First Published: Oct 25, 2020 10:34 PM IST
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