IndusInd International Holdings Chairman Ashok Hinduja, in an interaction with CNBC-TV18, said that there has been no margin call that has been triggered on their pledged holdings so far and that the promoter pockets are strong to increase the stake in IndusInd Bank, as and when they get regulatory approval.

“At the moment, there is no margin call,” Hinduja said. He also went on to explain why the shares were pledged.

“IIHL is a holding company. It has over 600 shareholders. There is no business in IIHL. It only depends on the dividend and the valuation and the NAV of the company. So the shareholders always push to the board and to the management that, why don’t you create further value? Why don’t you go for more acquisitions, which we have done. This is how the BFSI sector has come in. So whenever such opportunities come, and short term funding is required, if they have raised any pledge shares at an appropriate time, those shares also will be replaced,” Hinduja said.

Also Read: IndusInd Bank shares now valued at par with mid-sized PSU Banks after ₹18,000 crore sell-off

“So, the pockets of the shareholders and the pockets of the IIHL is very strong,” he added.

Hinduja also requested shareholders of IndusInd Bank to not panic and that he understands their concern of why the issue was not disclosed earlier. He also reiterated that there neither a margin call, nor the need to pledge any further shares.

“This is again dependent on the management of IIHL,” the IndusInd International Holdings Chairman said.

IndusInd Bank shares have seen their biggest single-day fall on record, having declined 27% on Tuesday, March 11. The fall comes after a slew of brokerages downgrading the stock and cutting their price targets over Monday and Tuesday after two negative developments.

The Reserve Bank of India first gave incumbent MD & CEO Sumant Kathpalia a one-year extension while the board had approved a three-year extension. On Monday evening, the lender also disclosed a hit of around ₹1,500 crore post-tax post an internal accounting review.

The sell-off in IndusInd Bank has resulted in a market cap erosion of close to ₹20,000 crore.

Also Read: IndusInd Bank Share Crash: Lender has 6 lakh retail shareholders; Mutual Fund holdings double in 12 months