(Bloomberg) -- India's central bank pushed back on the billionaire Hinduja brothers' plan to raise stake in IndusInd Bank Ltd., which has lost more than 70% of its market value this year, according to people familiar with the matter.
The Reserve Bank of India has conveyed the decision to the IndusInd founders Srichand and Gopichand Hinduja, the people said, asking not to be named as the information is not public. The brothers had applied to the central bank for approval to raise their stake in the lender to 26% from less than 15%, the bank said in an exchange filing in April.
IndusInd Bank was the worst-hit member of the country's benchmark index this year, after the central bank effectively took control of troubled lender Yes Bank Ltd. in March. Shares of IndusInd have fallen 72% this year on concerns about the founders borrowing money against its shares, worsening asset quality, and erosion of low-cost deposits.
The IndusInd founders, led by the Hinduja brothers, repaid a secured loan backed by the lender, their representative said in April.
Representatives for Hinduja, IndusInd and the RBI didn't respond to requests for comment.
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