By Jaspreet Kalra, Siddhi Nayak and Nishit Navin
MUMBAI/BENGALURU (Reuters) – IndusInd International Holdings (IIHL) on Tuesday said it will list the insurance units of Reliance Capital in two to three years, after it completed the transaction to buy the financial services firm.
IndusInd International’s bid to acquire debt-ridden Reliance Capital for around 96 billion rupees was approved by a bankruptcy tribunal in February last year.
IIHL Chairman Ashok Hinduja said the company will exit Reliance Capital’s units other than broking and asset reconstruction. Reliance Capital also operates in segments such as life, health insurance, and home financing with total assets under management of more than 900 billion rupees, according to its website.
Separately, Hinduja said the recent erosion in IndusInd Bank, the flagship investee company of IIHL, was short-term, adding that the financial services firm has not received any request for capital infusion from the private lender.
Last week, IndusInd Bank flagged a 2.35% hit to its net worth as of December 2024 due to an underestimation of hedging costs related to some past forex transactions, leading to a near 25% slump in its shares since then.
The bank has appointed an external agency to independently review and validate internal findings. Hinduja said that IndusInd Bank’s board will review the agency’s report and take a call on who is responsible for the forex transaction issue.
(Reporting by Jaspreet Kalra, Siddhi Nayak and Nishit Navin; Editing by Maju Samuel)
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