A day after logging a strong gain of 22.60 percent, the share price of IndusInd Bank surged 15 percent in the morning trade on BSE on April 8 after UBS Principal Capital Asia bought 53,83,066 shares of the private lender.
Singapore-based investment banking firm UBS Principal Capital Asia acquired a 0.85 percent stake in IndusInd Bank on April 7.
As per April 7 bulk deal data available on the National Stock Exchange, UBS acquired 53,83,066 equity shares of the bank at Rs 367 per share.
The total deal value stood at Rs 197.55 crore and could be one of the reasons for the stellar rally in the stock price.
The stock had fallen nearly 80 percent in the last three-month period, a big correction compared to the Nifty Bank (down 46 percent), Nifty (down 34 percent) and Nifty Private Bank (down 49 percent), following concerns over asset quality and strength of funding franchise.
One of the primary reasons was the withdrawal of deposits from select private banks, including IndusInd Bank, following the Yes Bank fiasco.
The coronavirus outbreak has further impacted growth and asset quality prospects in select business segments.
Meanwhile, the bank reported strong business operations for the quarter ended March 31, 2020.
As per a BSE filing of April 6, the bank's net advances grew 13 percent year-on-year (YoY) to Rs 2.09 lakh crore as on March 31 compared with Rs 1.86 lakh crore a year ago.
The bank's deposits increased 4 percent year on year (YoY) to Rs 2.02 lakh crore in Q4FY20 as against Rs 1.94 lakh crore a year ago.
Retail deposits and deposits from small business customers jumped 34 percent YoY to Rs 62,587 crore as on March 31 as against Rs 46,651 crore on March 31, 2019.
Liquidity coverage ratio for the quarter stood at 112.18 percent compared with 111.39 percent on March 31, 2019.
CASA ratio, however, declined marginally and stood at 40.5 percent YoY against 43.1 percent in the previous year's same period.
Shares of IndusInd Bank were trading 9.80 percent up at Rs 421.70 on BSE at 1055 hours.
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