The AGM which was held at the Grand Hyatt in Dubai was well attended by the affluent Sindhi community from across the world. Mr. A.P. Hinduja, Dr. Ram Buxani, Mr. Kewalram Sital, Mr. Nari Pohani and other dignitaries were present at the AGM.
At the AGM it was agreed that IIHL subsidiary IndusInd Bank, which operates 148 branches in India, will expand its financial services in strategic markets, including the Middle East, with significant NRI and Indian-origin populations.
These would be addressed through strategic alliances or by acquiring banks or by applying for fresh banking licenses.
Mr. S. P. Hinduja introduced the new executive management team of IndusInd Bank to IIHL shareholders.
The IIHL board as well as its shareholders at large welcomed the new management team headed by Mr. Romesh Sobti as CEO of IndusInd Bank. Mr. Sobti has about 35 years’ experience in state-owned and multinational banks.
At the AGM it was agreed that the objective of IIHL is to further ramp up the Bank’s operations so that the value of investments made by its shareholders may continue to appreciate.
In his opening speech Mr. S.P. Hinduja, Chairman, IIHL, said:
“The plans of Mr. Romesh Sobti and his team for the Bank are essentially based on two planks, namely: building on its strengths and remedying the weaknesses. The management team is confident that the Bank will overtake its peers in the next three years, as measured by the criteria of Productivity, Profitability, and Efficiency. Having overcome its past problems, IndusInd Bank is now poised for rapid growth as a significantly strengthened entity. Its Capital Adequacy Ratio, a key indicator of stability, stands at a comfortable 11.91% as on March 31, 2008, well above the regulatory minimum in India of 9%.”
“In fact, this ratio (more correctly referred to as the Capital to Risk-weighted Assets Ratio or CRAR) has risen further to 13.16% as on June 30, 2008. The Bank also enjoys the highest ratings on its debt instruments from the leading rating agencies in India – Crisil, ICRA, and Fitch. The Bank has consistently remained profitable every single year of its existence, right from its very first year of operations (1994-95).
“The value of shareholders’ investment in IIHL has considerably appreciated, even after providing a reasonable return by way of dividend payment. IIHL has been paying dividend to its shareholders since 1995.
The average dividend paid has been 6.33% per anum and the total dividends paid have amounted to $22.68m, equivalent to $0.73 per share of $1 each.
The average dividend paid since 1995 is about 2% higher than the average 6-month LIBOR during the same period.
“As on March 31, 2008, the networth of IIHL was $178.17m. In order to share the benefit of the growth of the Company, it was decided to issue 6% Five Year Bonus Bonds of $1 each to shareholders in the ratio of 1 bond to every 2 shares held with effect from October 1, 2007.”
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