IndusInd Ltd repays loan to Citibank, becomes debt-free entity

IndusInd Bank on Wednesday said its promoter IndusInd Ltd, Mauritius has fully repaid the loan to Citibank London and is now a debt-free firm. Last month, the bank had informed exchanges about pledging of 23.8 million equity shares equal to 3.43 per cent of current paid up capital of IndusInd Bank owned by IndusInd Ltd in favour of Citibank London against borrowing arrangements availed in September 2016. IndusInd Ltd has sent a communique to the bank in this regard.

"We hereby wish to confirm that IndusInd Ltd, Mauritius (Promoters of IndusInd Bank)  have fully liquidated/repaid the said borrowing arrangements and security trustees will be releasing the pledged shares this day(April 1)," the communique read. IndusInd Ltd, Mauritius is now a debt-free entity. It will be making necessary filings in this regard separately, it added.    The holdings of IIHL (Mauritius) and IL (Mauritius) stand at 14.68 per cent of the bank’s fully diluted capital basis, it said further.   "IndusInd International Holdings Ltd (IIHL) and IndusInd Ltd, Mauritius stand committed to maintaining their equity holding in IndusInd Bank at the overall regulatory limits prescribed for promoters of private sector banks in India," the communique said.

According to the RBI's bank licence norms, a private sector bank's promoter needs to pare holding to 40 per cent within three years of operations, 20 per cent within 10 years and to 15 per cent within 15 years.  IndusInd Bank stock closed 2.52 per cent down at Rs 342.30 on BSE. PTI KPM ANU ANU.