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IndusInd Bank

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' 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 inr 1470000000. In 2008, it issued fresh GDRs worth inr 2220000000.[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 inr 150000000000.[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

External links

References

  1. Board of Directors Profiles – IndusInd Bank www.indusind.bank.in^
  2. "FY 25 Results"^
  3. Annual Report 2024-2025 www.indusind.bank.in^
  4. Alekh Angre. IndusInd Bank promoters see stock dip as investment opportunity The Economic Times, 19 March 2025, retrieved 25 March 2025^
  5. IndusInd Bank adds 2% on NCLT nod for merger with BFIL moneycontrol, retrieved 25 April 2019^
  6. Annual Report 2018-19 www.indusind.bank.in, retrieved 16 February 2020^
  7. Benn Kochuveedan. IndusInd Bank net profit up 15% to Rs 2,349 crore in Q4 The New Indian Express, 2024-04-25, retrieved 2025-03-21^
  8. Pranati Deva. 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 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. Nikhat Hetavkar. IndusInd acquires Bharat Financial in Rs 15,000-cr deal Business Standard, October 15, 2017^
  17. IndusInd Bank-Bharat Financial merger to be effective from July 4 The Economic Times, June 19, 2019^
  18. Shadowed by financial discrepancies: IndusInd Bank posts largest-ever quarterly loss at Rs 2,328.92 crore The Financial Express, 2025-05-21, retrieved 2025-09-17^
  19. IndusInd Bank goes live on direct tax collection system of CBDT CNBC TV18, March 23, 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, 2025-03-11, retrieved 2025-03-11^
  22. IndusInd Bank CEO resigns Financialexpress, 2025-05-01, retrieved 2025-05-01^
  23. IndusInd Bank clarifies on new accounting irregularities, says Rs 674 crore 'incorrectly recorded as interest' The Economic Times, 2025-05-16, retrieved 2025-06-27^
  24. Vinod Mahanta, Sangita Mehta. IndusInd Bank probes yet another accounting issue The Economic Times, 2025-05-15, retrieved 2025-06-27^
  25. NFRA to investigate IndusInd Bank over accounting discrepancies in forex derivative The Financial Express, 2025-05-27, retrieved 2025-06-27^
  26. Sebi probes insider trading at IndusInd Bank: Report Deccan Herald, retrieved 2025-03-27^
  27. Insider trading glare on senior IndusInd Bank officials. What do rules say? Mar 27, 2025^
  28. Subhana Shaikh. SEBI Bans IndusInd Bank Ex-CEO Sumant Kathpalia, Four Others From Securities Market NDTV Profit, 2025-05-28, retrieved 2025-05-29^
  29. SEBI bars former IndusInd Bank CEO, top executives from stock market over insider trading charges - BusinessToday Business Today, 2025-05-28, retrieved 2025-06-27^
  30. Guidelines on entry of new banks in the private sector Reserve Bank of India, 3 January 2001, retrieved 7 November 2020^