IndusInd Bank refuses takeover talks with Kotak Mahindra Bank

MUMBAI: Private lender IndusInd Bank refused to have any exploratory takeover talks with peers Kotak Mahindra Bank and said the former has unceasing support from its promoters, the Hinduja family. Earlier in the day, Bloomberg News had reported that Kotak Mahindra Bank is investigating a takeover of less rival IndusInd Bank to create the country’s eighth largest financial firm by assets.

“IndusInd Bank categorically denies any such development, its malicious and incorrect,” the bank said in an email response. “The organizer of IndusInd Bank, IndusInd International Holdings Limited (IIHL) reiterates their full support for IndusInd Bank now and always.”

The bank added that the initiators have intervened to support the bank every time the crisis has hit the Indian economy and its financial institutions and will continue with its unvarnished support.

A spokesman for Kotak Mahindra Bank said they had no comments to offer.

Bloomberg had reported it Uday Kotak is investigating a takeover of all shares and has had initial talks on the proposal, where the founders of IndusInd Bank could retain a stake in the lender following an agreement.

IndusInd Bank initiators, the close-knit Hinduja family, have been involved in a battle over the family assets. 84-year-old SP Hinduja, the eldest of the four brothers and his daughters Shanu and Vinoo, wants a letter from 2014 signed by the brothers declared invalid.

The letter claims that everything a brother has belongs to everyone, and each man appoints the other as executor. The private lender has seen its market value fall 60% this year after being hit by concerns about declining asset quality since the IL & FS crisis in 2018 and a low-deposit flight.