Private lender Induslnd Bank informed that its shareholder rejected a proposal to induct two nominee directors to the board, 54.04 per cent voting against an amendment to the banking major’s articles of association.
The investors in the Mumbai-headquartered bank cleared the appointment of Rajiv Anand as the lender’s MD and CEO, a move seen as critical in aiding the bank recover from financial woes pertaining to its previous frauds.
The promoter entity Induslnd International Holdings Ltd (IIHL), which is based in Mauritius noted the bank has already received from both Reserve Bankof India (RBI) and the bank’s baord.
In an official statement, IIHL President and CEO Moses Harding said, “However, we understand that the said resolution in the IndusInd Bank AGM held today was not carried through, although the proposed resolution complied with the applicable laws and governance practices.”
Notably, he called out objections raised by proxy advisors as a ‘misinterpretation’, whilst saying that IIHL would engage with stakeholders to address these concerns in line with the RBI’s approval.
Meanwhile, the promoter group mentioned that it supported IndusInd Bank for over three decades without seeking board representation and pointed out how it subscribe to 1.57 crore warrants at Rs 1,709 per share in 2021, when the market price was Rs 1,046, providing Rs 2,683 crore of capital.
Under RBI’s ownership and governance rules, IIHL has brought down its stake in IndusInd Bank to about 15 percent, from over 90 percent in 1994.
The promoter has now sought approval to raise its holding to 26 percent, in line with RBI’s acceptance of the Internal Working Group’s recommendations.
“Promoters have always kept the interest of shareholders as the primary objective and will continue to do so,” Harding said.
