IndusInd Bank share crash: Societe Generale sold 39 lakh shares in bulk deal

IndusInd Bank shares fell 20% intraday in the previous session after the lender announced its second-quarter earnings and share sale by Societe Generale, a leading European financial services group. Paris-based Societe Generale sold 39.30 lakh shares, or 0.50 per cent of the lender, in a bulk deal, NSE data showed. The share sale price was Rs 1,070.61 per piece, taking the transaction value to Rs 420.80 crore.

On the other hand, Societe Generale acquired 29,725 shares at an average price of Rs 1,083.79 per piece, according to NSE data. The transaction value was Rs 3.22 crore.

Results were the weakest among competitors and fell below estimates. However, most brokerage houses maintained their call to buy bank shares.

The lender reported a 40 percent decline in net profit for the September 2024 quarter. Profit fell to Rs 1,331 crore in the second quarter, missing Street estimates. Profits were hurt by an increase in provisions for bad loans in the last quarter. In September 2023, the lender reported a profit of Rs 2,181 crore.

Provisions and contingency liabilities increased by 87% to Rs 1,820 crore in the second quarter as against Rs 974 crore recorded in the same quarter last year.

Shares of IndusInd Bank closed 18.56% lower at Rs 1,041.55 on the BSE. The lender’s market capitalization fell to Rs 81,136 crore on Friday.