Foreign portfolio investors have reduced their stake in IndusInd Bank stock by more than 16 percentage points in 2024 leading up to the recent disclosures by the bank. During the same period, the CEO and Deputy CEO of the bank were also seen selling off shares, according to data.
CEO and Managing Director Sumant Kathpalia and Deputy CEO Arun Khurana have been consistently offloading their shares in the bank over the past couple of years, as per insider trading data provided exclusively to businessline by Prime Database.
Kathpalia sold over 10 lakh shares worth more than ₹145 crore from May 2023 to December 2024. The selling prices varied, starting from an average of ₹1,269 a share in May 2023, peaking at around ₹1,558 a share in March 2024. The decline in share prices led to the CEO selling 60,000 shares at an average of ₹998 apiece in December 2024.
On the other hand, Deputy CEO Khurana sold more than 5.4 lakh shares worth slightly over ₹80 crore during the same period. His last transaction for the year was in June.
In contrast, domestic institutional investors increased their stake in the bank by over 15 percentage points during the same period. While FIIs were selling off their holdings, DIIs were accumulating shares.
Foreign investors had maintained their stake in the bank at around 38-39 per cent throughout 2023 but began selling in 2024, bringing their stake down to 22.9 per cent by the end of the year. On the other hand, domestic institutions started increasing their stake in the bank in 2024, reaching 39.66 per cent by December.
The bank recently disclosed mismatches in its foreign exchange derivatives transactions, impacting its net worth by ₹1,577 crore. This revelation led to a sharp drop in the stock price. Additionally, the RBI extended the CEO’s tenure by only one year, citing discomfort with his leadership skills.
