Even as IndusInd Bank completes 25 years of operations, a meagre investment of Rs 100 in the bank in 1998 would have grown to Rs 3,410 today. We take a closer look.
Even as IndusInd Bank completes 25 years of operations, a meagre investment of Rs 100 in the bank in 1998 would have grown to Rs 3,410 today. Notably, IndusInd Bank has multiplied investor wealth by a whopping 34 times in the last 25 years. Interestingly, the bank is led by veteran Romesh Sobti, whose term will end in March 2020 as of now, when he becomes 70 years of age. We take a look at the IndusInd Bank’s growth in the last 25 years, and the succession plan at the bank going forward.
The bank started its operations with a capital amount of Rs 100 crore out of which Rs 60 crore was raised by the Indian Residents and Rs 40 crore was raised by the NRIs. Notably, the bank was promoted by a group of Non Resident Indians. Through its initial public offer,the bank raised Rs 180 crore.
The bank today
The loan book of IndusInd Bank has grown at a CAGR of 28% to Rs 1.73 lakh crore. As on December 31st 2018, IndusInd Bank had 1,558 branches and 2,453 ATMs. In the latest quarter, IndusInd Bank has reported a 5.21% on-year rise in profit at Rs 985.03 crore for December quarter. The number came in higher than Rs 922 crore profit forecast by analysts in an ET Now poll. The lender had reported Rs 936.25 crore profit in the year-ago quarter.
Ramesh Sobti’s succession plan
Romesh Sobti, who joined the bank as Managing Director & CEO of IndusInd Bank opened said that internal candidates are more likely to replace the veteran leader post his retirement. “While I think there is more continuity of thought in action through internal candidates. But, I’m quite sure the board is also going to look externally. If there is somebody who fits the bill externally, they will consider it. Personally, we believe that we have created a very strong franchise. Not only at the level of the CEO but the next levels as well. The chances of internal candidates are stronger,” Romesh Sobti said in an interview to ET Now.