IndusInd Bank has agreed to sell its ₹247 crore principal loans of Future Retail and Asian Hotels (North) Ltd to Edelweiss Asset Reconstruction Company for ₹195 crore, the Economic Times reported, quoting two people aware of the development.
"Private lender IndusInd Bank this week agreed to sell its ₹247 crore principal loans of Future Retail and Asian Hotels (North) Ltd to Edelweiss Asset Reconstruction Company at a consideration of ₹195 crore, said two people aware of the development," the report said.
IndusInd Bank invited offers for the ₹142 crore secured principal loan given to Future Retail and ₹105 crore principal loan given to Asian Hotel Delhi under the 15:85 basis, the report said.
Under the conventional 15:85 structure, the bank will receive 15 percent of the consideration as upfront payment, while for the remaining 85 percent, the ARC will issue security receipts (SR) which would be redeemed as they recover their dues from the borrowers, the report further added.
Shares of IndusInd Bank have risen 4 percent this year so far against a one percent decline in the benchmark Sensex.
Brokerage firm Nirmal Bang has a 'buy' call on the stock of IndusInd Bank with a target price of ₹1,326.
"We remain optimistic about IndusInd Bank’s business outlook. The bank is targeting annual loan growth of 16-18 percent in the medium term. With covid risks now behind us and given the bank’s domain expertise, the CV and MFI portfolios are positioned strongly for growth as the economic recovery continues," said Nirmal Bang.
"We remain positive about the bank’s growth and earnings trajectory. We are currently building in loan CAGR of 14.8 percent over FY22-24E and EPS CAGR of nearly 32 percent. Our earnings growth estimates are largely driven by a reduction in credit costs even as PPOP growth will be in line with overall asset growth," said the brokerage firm.
Market sentiment on the stock is ‘neutral’, according to a MintGenie poll and an average of 41 analysts has a ‘strong buy’ call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
