IndusInd Bank shares in focus after shareholders reject key proposal at AGM

Shares of Mumbai-based private lender IndusInd Bank Ltd. will be in focus on Monday, September 1, after the bank’s shareholders rejected a key proposal during its Annual General Meeting (AGM).Shareholders have rejected the promoters’ bid to nominate an additional nominee director on its board.

The move was planned last month, when the board of IndusInd Bank had amended its Articles of Association, to empower the promoters to collectively nominate up to two directors on the board, subject to approval from its shareholders.

However, during the AGM, which was held on August 29, 54% of the shareholder vote, turned out to be against the resolution.
The Additional Director, which was supposed to be nominated on the board, was meant to be non-executive and non-independent.In an official statement, IndusInd International Holdings (IIHL), the promoter of IndusInd Bank, said that they believe there has been a misinterpretation, for which, they will be happy to address concerns of the shareholders, in-line with the approval granted to them by the Reserve Bank of India.

The statement further said that IIHL has been consistently extending its support to the bank through multiple business and regulatory cycles.

IIHL’s request to increase its stake in IndusInd Bank to 26%, having brought it down to 15% from 90% three decades earlier, is currently under consideration and pending approval from the RBI.

Shares of IndusInd Bank had ended 0.8% lower on Friday at ₹740.9. The stock is down 5.5% in the last one month.