IndusInd Bank

IndusInd Bank Limited
Company typePublic
IndustryFinancial services
FoundedApril 1994 (1994-04)
FounderS. P. Hinduja
HeadquartersMumbai, Maharashtra,
India
Key people
Products
Revenue ₹56,351 crore (US$6.7 billion) (2025)[2]
₹10,661 crore (US$1.3 billion) (2025)[2]
₹2,575 crore (US$300 million) (2025)[2]
Total assets ₹554,018 crore (US$66 billion) (2025)[2]
Total equity ₹64,835 crore (US$7.7 billion) (2025)[2]
OwnerHinduja Group (16.29%)[3]
Number of employees
44,974 (2025)[4][2]
SubsidiariesBFIL[5]
Capital ratio15.31% [2]
Websitewww.indusind.bank.in

IndusInd Bank Limited is an Indian banking and financial services company based in Mumbai.[6] It was established in April 1994 and promoted by the Hinduja Group.[7][8]

History

IndusInd Bank was among nine 'new-generation'[a] banks that obtained a banking license in 1994; it was started by S. P. Hinduja along with hundreds of NRI and other shareholders.[9] Named after the Indus Valley Civilisation, the bank began its operations on 17 April 1994, after being inaugurated by the then Union Finance Minister Manmohan Singh.[10][11] It launched its initial public offering in 1997.[12]

In 2004, IndusInd Bank completed its merger with Ashok Leyland Finance, a vehicle financing company which was also part of the Hinduja Group.[13]

IndusInd Bank listed on the Luxembourg Stock Exchange in 2007 by issuing global depository receipts (GDRs) worth ₹147 crore (US$35.55 million). In 2008, it issued fresh GDRs worth ₹222 crore (US$51.03 million).[14]

In 2011, IndusInd Bank acquired Deutsche Bank India's loss-making credit cards division.[15]

In October 2017, IndusInd Bank announced its acquisition of Bharat Financial Inclusion Limited (BFIL) for ₹15,000 crore (US$2.3 billion).[16] The merger was officially completed in July 2019.[17]

Operations

As of March 2025, the bank has 41 million customers, 3,081 branches, and 3,027 ATMs in India.[18] It is an empaneled banker for MCX. Its shares have been a part of the NIFTY 50 index since 1 April 2013.[19]

Controversy

Derivative accounting discrepancies

Between 2023 and 2025, IndusInd Bank identified accounting irregularities related to its forex derivatives transactions, after a September 2023 directive from the Reserve Bank of India (RBI) mandated banks to adopt mark-to-market valuation for derivatives. An initial internal review estimated the potential financial impact at ₹1,572 crore in December 2023, which was revised upward to ₹2,361 crore by May 2024.[20]

On 11 March 2025, IndusInd Bank's shares crashed over 27% after it disclosed the discrepancies, with analysts raising questions on the bank's internal controls.[21] IndusInd Bank's Managing Director and CEO, Sumant Kathpalia, resigned in April 2025, taking "moral responsibility" for the discrepancies. His resignation followed that of Deputy CEO Arun Khurana, who stepped down a day earlier.[22]

Independent audits were conducted by PwC and Grant Thornton, with Grant Thornton estimating a cumulative impact of approximately ₹1,960 crore. In April 2025, the bank reported a reduction in net worth of ₹1,979 crore, or 2.27%, following revaluation adjustments.[23][24][25]

Insider trading investigation

After the accounting discrepancies came to light, reports stated that SEBI began investigating possible insider trading by senior officials of the bank.[26][27] In May 2025, SEBI banned Kathpalia and four others from dealing in the share market,[28] accusing them of selling shares before the bank publicly announced the losses and avoiding about ₹20 crore in losses. SEBI froze their accounts and barred them from trading while the investigation continued.[29]

See also

Notes

^a The term 'new-generation' refers to banks established after the Reserve Bank of India issued updated licensing guidelines for new private sector banks in 1993.[30]

References

  1. ^ "Board of Directors Profiles – IndusInd Bank". www.indusind.bank.in.
  2. ^ a b c d e f g "FY 25 Results"
  3. ^ Angre, Alekh (19 March 2025). "IndusInd Bank promoters see stock dip as investment opportunity". The Economic Times. Retrieved 25 March 2025.
  4. ^ "Annual Report 2024-2025" (PDF). www.indusind.bank.in.
  5. ^ "IndusInd Bank adds 2% on NCLT nod for merger with BFIL". moneycontrol. Retrieved 25 April 2019.
  6. ^ "Annual Report 2018-19" (PDF). www.indusind.bank.in. Retrieved 16 February 2020.
  7. ^ Kochuveedan, Benn (25 April 2024). "IndusInd Bank net profit up 15% to Rs 2,349 crore in Q4". The New Indian Express. Retrieved 21 March 2025.
  8. ^ Deva, Pranati. "ICICI Direct picks IndusInd Bank as a 'High Conviction Idea' for December; here's why". Mint.
  9. ^ "IndusInd Bank debuts on Nifty; shares soar 3%". The Economic Times. 1 April 2013. Retrieved 1 March 2025.
  10. ^ "IndusInd Bank Annual Report 2003-2004" (PDF). BSE. Retrieved 1 March 2025.
  11. ^ "IndusInd Bank Ltd. - History". Business Standard India.
  12. ^ "Indusind Bank Net Up 24 Per Cent At Rs 91 Cr". Business Standard. Retrieved 1 March 2025.
  13. ^ "RBI clears IndusInd merger with Ashok Leyland Fin". The Economic Times. 16 June 2004. Retrieved 1 March 2025.
  14. ^ "IndusInd taps overseas market to raise Rs 222 cr". The Economic Times. 25 June 2008. Retrieved 1 March 2025.
  15. ^ "Deutsche sells credit card biz to IndusInd". The Indian Express. 11 April 2011. Retrieved 1 March 2025.
  16. ^ Hetavkar, Nikhat (15 October 2017). "IndusInd acquires Bharat Financial in Rs 15,000-cr deal". Business Standard.
  17. ^ "IndusInd Bank-Bharat Financial merger to be effective from July 4". The Economic Times. 19 June 2019.
  18. ^ "Shadowed by financial discrepancies: IndusInd Bank posts largest-ever quarterly loss at Rs 2,328.92 crore". The Financial Express. 21 May 2025. Retrieved 17 September 2025.
  19. ^ "IndusInd Bank goes live on direct tax collection system of CBDT". CNBC TV18. 23 March 2023.
  20. ^ "Sebi bars former IndusInd Bank CEO, four others from market for insider trading". Mint.
  21. ^ "IndusInd Bank shares crash 27% to record worst trading day ever. Here's why". India Today. 11 March 2025. Retrieved 11 March 2025.
  22. ^ "IndusInd Bank CEO resigns". Financialexpress. 1 May 2025. Retrieved 1 May 2025.
  23. ^ "IndusInd Bank clarifies on new accounting irregularities, says Rs 674 crore 'incorrectly recorded as interest'". The Economic Times. 16 May 2025. ISSN 0013-0389. Retrieved 27 June 2025.
  24. ^ Mahanta, Vinod; Mehta, Sangita (15 May 2025). "IndusInd Bank probes yet another accounting issue". The Economic Times. ISSN 0013-0389. Retrieved 27 June 2025.
  25. ^ "NFRA to investigate IndusInd Bank over accounting discrepancies in forex derivative". The Financial Express. 27 May 2025. Retrieved 27 June 2025.
  26. ^ "Sebi probes insider trading at IndusInd Bank: Report". Deccan Herald. Retrieved 27 March 2025.
  27. ^ "Insider trading glare on senior IndusInd Bank officials. What do rules say?". 27 March 2025.
  28. ^ Shaikh, Subhana (28 May 2025). "SEBI Bans IndusInd Bank Ex-CEO Sumant Kathpalia, Four Others From Securities Market". NDTV Profit. Retrieved 29 May 2025.
  29. ^ "SEBI bars former IndusInd Bank CEO, top executives from stock market over insider trading charges - BusinessToday". Business Today. 28 May 2025. Retrieved 27 June 2025.
  30. ^ "Guidelines on entry of new banks in the private sector" (PDF). Reserve Bank of India. 3 January 2001. Retrieved 7 November 2020.
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