Societe Generale, a financial services company, sold a 0.5% stake in IndusInd Bank for ₹421 crore through an open market transaction on Friday. The company sold 39.30 lakh shares at an average price of ₹1,070.61 each, totaling about ₹420.80 crore.
In a separate move, Societe Generale also purchased 29,725 shares of IndusInd Bank at an average price of ₹1,083.79 per share, amounting to ₹3.22 crore. Details about other buyers of the shares were not available.
Shares of IndusInd Bank dropped nearly 19% to close at ₹1,037 on the National Stock Exchange (NSE) after the bank reported a 40% decline in its net profit for the September quarter, falling to ₹1,331 crore due to asset quality concerns. This is down from ₹2,202 crore in the same period last year.
Despite this, the bank’s total income increased to ₹14,871 crore from ₹13,530 crore a year ago. However, IndusInd Bank also announced it would set aside an extra ₹525 crore as provisions due to challenges in the operating environment. The bank faced lower interest income because of higher loan defaults and a decline in its microlending portfolio, which affected profits.
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