IndusInd Bank Surges Following RBI Nod for Asset Management Subsidiary

IndusInd Bank shares increased by over 2.67% after receiving approval from the RBI to establish a wholly-owned subsidiary for mutual fund asset management. This move aligns with the bank's strategic expansion into the asset management sector, aiming to diversify its financial services portfolio.

IndusInd Bank's shares surged more than 2.67% following the Reserve Bank of India's (RBI) approval to create a wholly-owned subsidiary for mutual fund asset management. The approval was communicated through a letter dated August 19, 2024, the bank informed the exchange in a filing.

The RBI's letter permits IndusInd Bank not only to set up the subsidiary but also to infuse equity capital into the new entity. This strategic initiative is part of the bank's broader efforts to diversify its financial services portfolio and expand its presence in the fast-growing asset management sector in India.

However, the RBI's approval comes with additional conditions, the specifics of which have not been disclosed. The new subsidiary will allow IndusInd Bank to directly manage and offer various mutual fund products, delivering a comprehensive range of investment options to its customers. IndusInd Bank's shares were trading at Rs 1383, up by Rs 35, at the time of filing this report. (ANI)

(With inputs from agencies.)