IndusInd Bank shares tumble 3% post large deal

Shares of IndusInd Bank fell 3 percent on March 16 after a large deal took place on the bourses.

Around 7.35 lakh shares or a 0.13 percent stake exchanged hands on the bourses in a large deal, the buyer and seller of which could not be immediately identified by Moneycontrol.

The large deal took place at an average of Rs 1,011 per share, with a total deal value of Rs 74.37 crore.

The large deal also drove volumes in the counter as 64 lakh shares exchanged hands so far as compared to the one-month daily traded average of 36 lakh shares.

At 01.43 pm, shares of IndusInd Bank were trading at Rs 1,017.90 on the National Stock Exchange, a decline of 2.53 percent from the previous close.

IndusInd Bank has also been under pressure in the recent sessions on the back of selling across the entire banking pack in the aftermath of the sudden fall of three US banks.  The stock has corrected around 13 percent in the past week.

On Monday, the stock had plummeted 7.4 percent after Sumant Kathpalia’s reappointment as the lender’s managing director and chief executive officer for an additional two years, instead of three, which did not sit well with investors.

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Kathpalia has played a crucial role in the leading the bank’s growth in the recent years, hence the lower than expected extension of his tenure disappointed brokerages and investors alike.

Global research and broking firm JP Morgan downgraded its rating for the lender to “neutral” post RBI’s decision to extend the chief executive officer’s tenure for 2 years instead of 3 years.

Morgan Stanley also expressed concerns on the management’s lack of clarity on the RBI’s decision  to grant a 2 year tenure extension which was less than the market’s expectation of a 3 year extension.

In other news, a Bloomberg report said the lender is also likely to withdraw its insolvency petition against Zee Entertainment Enterprises after the latter agreed to settle dues of about Rs 837 million ($10 million) to IndusInd Bank.

The report added that IndusInd bank has agreed to withdraw its insolvency proceedings against the media company once the repayment is made.

Also Read: Zee Entertainment agrees to pay IndusInd Bank dues; lender likely to withdraw insolvency case

The withdrawal of insolvency proceedings will help Zee move ahead on its merger with Sony Group.

Shares of Zee Entertainment Enterprises also reacted positively to the news and shot up nearly 8 percent.