Hinduja says its right time to up stake in Indusind Bank.                                        

But today he evaded a question on infusing immediate capital into the bank. 

On the acquisition of Reliance Capital (RCap), he said the management transfer of the non-banking financial company will be completed by Wednesday. 

IIHL had paid Rs 9,861 crore (Rs 9,660 crore upfront and Rs 2,750 crore in equity capital) to the lenders of RCap whose exposures was three-times more at over Rs 30,000 crore after winning the bid through the insolvency resolution process  last year. The deal got delayed as the company was not clearing the full payment.

RCap’s lenders included Yes Bank, Bank of Baroda, Indusind Bank, Andhra Bank, IDFC Bank, ICICI Bank, IDBI Bank and Federal Bank among others. The company owed the money to these lenders through its subsidiaries Reliance Commercial Finance (Rs 11,620 crore), Reliance Home Finance (Rs 7,430 crore ), and standalone Reliance Capital (Rs 6,750 crore). that apart it also owed Rs 4,500 crore to NCD subscribers. 

The last payment of Rs 4,500 crore of NCD subscription was credited   to the designated Barclays account only at around 5.30 pm Tuesday, just half an hour before Hinduja was to officially announce the deal completion, a private sector bank which had exposure to RCap told The New Indian Express this evening.

The Hindujas plan to expand its BFSI portfolio after the acquisition of RCap’s business, and the management transfer is likely to take place on Wednesday, Hinduja said.