IndusInd Bank: Difference between revisions

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| logo = IndusInd Bank SVG Logo.svg
| logo = IndusInd Bank SVG Logo.svg
| logo_size =  
| logo_size =  
| logo_caption = ''We Make You Feel Richer''
| logo_caption =  
| type = [[Public]]
| type = [[Public company|Public]]
| traded_as = {{NSE|INDUSINDBK}}<br />{{BSE|532187}}<br />[[BSE SENSEX|BSE SENSEX Constituent]]<br />[[NIFTY 50|NSE NIFTY 50 Constituent]]
| traded_as = {{ubl
| industry = [[Banking]]<br />[[Financial service|Financial Services]]
|{{NSE|INDUSINDBK}}
|{{BSE|532187}}
|{{LuxSE|IDUSB}}
}}
| industry = [[Financial service]]s
| foundation = {{Start date and age|1994|04||p=yes}}
| foundation = {{Start date and age|1994|04||p=yes}}
| founder = [[S. P. Hinduja]]
| founder = [[S. P. Hinduja]]
| key_people = Sumant Kathpalia <br /> {{small|([[Managing Director|MD & CEO]])}}<ref>https://www.indusind.com/about-us/people/board-of-directors.html</ref>
| key_people = {{Unbulleted list|
| products = [[Credit card]]s, [[Retail banking|Consumer banking]], [[Commercial bank|Corporate banking]], [[Financial services|Finance and Insurance]], [[Mortgage loan]]s, [[Private banking]], [[Wealth management]], [[Investment banking]]
* Rajiv Anand <small>([[Managing Director]] & [[CEO]])</small><ref>{{Cite web|url=https://www.indusind.bank.in/in/en/about-us/board-of-director.html|title = Board of Directors Profiles – IndusInd Bank|website=www.indusind.bank.in}}</ref>
| revenue = {{increase}}{{INRConvert|36002|c}} (2020)<ref name="BalSheet">[https://www.indusind.com/content/dam/indusind-corporate/investor-resource/latest-annual-report/annual-report-2019-20.pdf "Annual Report 2020"] indusind.com (15 March 2020).</ref>
}}
| operating_income = {{increase}}{{INRConvert|10772|c}} (2020)<ref name="BalSheet"/>
| products = {{ubl|[[Retail banking|Consumer banking]]|[[Commercial banking]]|[[Credit cards]]|[[Investment banking]]|[[Mortgage loan]]s|[[Private banking]]|[[Private equity]]|[[Wealth management]] }}
| net_income = {{increase}}{{INRConvert|4417|c}} (2020)<ref name="BalSheet"/>
| revenue = {{increase}} {{INRConvert|56351|c}} (2025)<ref name="BalSheet">[https://www.bseindia.com/xml-data/corpfiling/AttachHis/e0d0c950-1cf0-4d5a-972b-79a608a81bff.pdf "FY 25 Results"]</ref>
| assets = {{increase}}{{INRConvert|307057|c}} (2020)<ref name="BalSheet"/>
| operating_income = {{decrease}} {{INRConvert|10661|c}} (2025)<ref name="BalSheet"/>
| equity =  
| net_income = {{decrease}} {{INRConvert|2575|c}} (2025)<ref name="BalSheet"/>
| num_employees = 30,674 (2020)<ref name="BalSheet"/>
| assets = {{increase}} {{INRConvert|554018|c}} (2025)<ref name="BalSheet"/>
| equity = {{increase}} {{INRConvert|64835|c}} (2025)<ref name="BalSheet"/>
| num_employees = 44,974 (2025)<ref>{{cite web |title=Annual Report 2024-2025 | url=https://www.indusind.bank.in/content/dam/indusind-corporate/investor-resource/latest-annual-report/annual_report_2024-25.pdf | website=www.indusind.bank.in}}</ref><ref name="BalSheet"/>
| ratio = 15.31% <ref name="BalSheet"/>
| ratio = 15.31% <ref name="BalSheet"/>
| location = [[Pune]], [[Maharashtra]]
| location = [[Mumbai]], Maharashtra
| hq_location_country = [[India]]
| hq_location_country = India
| owner = [[Hinduja Group]]
| owner = [[Hinduja Group]] (16.29%)<ref>{{cite news |last1=Angre |first1=Alekh |title=IndusInd Bank promoters see stock dip as investment opportunity |url=https://economictimes.indiatimes.com/markets/stocks/news/indusind-bank-promoters-see-stock-dip-as-investment-opportunity/articleshow/119171098.cms|access-date=25 March 2025 |work=The Economic Times |date=19 March 2025}}</ref>
| subsid = [[Bharat Financial Inclusion|BFIL]]<ref>{{cite news|url=https://www.moneycontrol.com/news/business/stocks/indusind-bank-adds-2-on-nclt-nod-for-merger-with-bfil-3882081.html/amp|title=IndusInd Bank adds 2% on NCLT nod for merger with BFIL|work=moneycontrol|access-date=25 April 2019}}</ref>
| subsid = [[Bharat Financial Inclusion|BFIL]]<ref>{{cite news|url=https://www.moneycontrol.com/news/business/stocks/indusind-bank-adds-2-on-nclt-nod-for-merger-with-bfil-3882081.html/amp|title=IndusInd Bank adds 2% on NCLT nod for merger with BFIL|work=moneycontrol|access-date=25 April 2019}}</ref>
| homepage = {{url|https://www.indusind.com/}}
| homepage = {{URL|https://www.indusind.bank.in/}}
}}
}}
'''IndusInd Bank Limited''' is a new-generation{{ref label|New-generation|a}} Indian bank headquartered in [[Pune]].<ref>{{cite web|url=https://www.indusind.com/content/dam/indusind/AnnualReports/2018-19/2018-19/AnnualReport201819.pdf|title=Annual Report 2018-19|work=www.indusind.com|access-date=16 February 2020}}</ref> The bank offers commercial, transactional and electronic banking products and services. IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister [[Manmohan Singh]].<ref name="AboutUs">{{cite web|url=http://indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.html|title=Vision and Mission}}</ref> IndusInd Bank is the first among the new-generation private banks in India.{{Citation needed|date=November 2020}}
'''IndusInd Bank Limited''' is an Indian banking and [[financial services]] company based in [[Mumbai]].<ref name=":0">{{cite web |title=Annual Report 2018-19 |url=https://www.indusind.bank.in/content/dam/indusind-corporate/investor-resource/latest-annual-report/AnnualReport201819.pdf |access-date=16 February 2020 |work=www.indusind.bank.in}}</ref> It was established in April 1994 and [[Corporate promoter|promoted]] by the [[Hinduja Group]].<ref>{{Cite web |last=Kochuveedan |first=Benn |date=2024-04-25 |title=IndusInd Bank net profit up 15% to Rs 2,349 crore in Q4 |url=https://www.newindianexpress.com/business/2024/Apr/25/indusind-bank-net-profit-up-15-to-rs-2349-crore-in-q4 |access-date=2025-03-21 |website=The New Indian Express |language=en}}</ref><ref>{{Cite web |last=Deva |first=Pranati |title=ICICI Direct picks IndusInd Bank as a 'High Conviction Idea' for December; here's why |url=https://www.livemint.com/market/stock-market-news/icici-direct-picks-indusind-bank-as-a-high-conviction-idea-for-december-heres-why-11702450569967.html |website=Mint}}</ref>


The bank started its operations with ₹100 [[crores]] (10 billion) in capital, of which ₹60 crores were raised by Indian residents and ₹40 crores were raised by [[Non-resident Indian and person of Indian origin|Non-Resident Indians]] (NRI). The bank specializes in retail banking services and is also working on expanding its network of branches all across the country. According to the bank, its name is derived from the [[Indus Valley Civilisation]].<ref>{{cite web|url=http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.html |title=Indusind Bank Ltd - Profile |publisher=Indusind Bank Ltd |date=25 May 2013 |access-date=25 May 2013 }}</ref>
== History ==
IndusInd Bank was among nine 'new-generation'{{ref label|New-generation|a}} banks that obtained a banking license in 1994; it was started by [[S. P. Hinduja]] along with hundreds of [[Non-Resident Indians|NRI]] and other shareholders.<ref>{{cite news |title=IndusInd Bank debuts on Nifty; shares soar 3% |url=https://economictimes.indiatimes.com/markets/stocks/news/indusind-bank-debuts-on-nifty-shares-soar-3/articleshow/19327034.cms |access-date=1 March 2025 |work=The Economic Times |date=1 April 2013}}</ref> Named after the [[Indus Valley Civilisation]], the bank began its operations on 17 April 1994, after being inaugurated by the then [[Ministry of Finance (India)|Union Finance Minister]] [[Manmohan Singh]].<ref>{{cite web |title=IndusInd Bank Annual Report 2003-2004 |url=https://www.bseindia.com/HIS_ANN_RPT/HISTANNR/2004/INDUSIND_BANK_LTD-532187-MARCH-2004.PDF |publisher=BSE |access-date=1 March 2025}}</ref><ref>{{cite news |title=IndusInd Bank Ltd. - History |url=https://www.business-standard.com/company/indusind-bank-5531/information/company-history |work=Business Standard India}}</ref>  It launched its [[initial public offering]] in 1997.<ref>{{cite news |title=Indusind Bank Net Up 24 Per Cent At Rs 91 Cr |url=https://www.business-standard.com/article/specials/indusind-bank-net-up-24-per-cent-at-rs-91-cr-198051501054_1.html |access-date=1 March 2025 |work=Business Standard}}</ref>


As on 31 December 2018, IndusInd Bank had 1,558 branches, and 2453 ATMs spread across different geographical locations of the country.<ref>{{Cite web|url=https://www.indusind.com/content/dam/indusind/PressRelease/2018-19/PressRelease-IndusIndBankQ3FY19.pdf|title=IndusInd Bank Q3 Operating Profit at Rs. 2,117 crores|website=IndusInd Bank}}</ref> It also has representative offices in London, Dubai and Abu Dhabi.<ref name="aboutus">{{cite web|url=http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/our-profile/index.html |title=Indusind Bank Limited - Profile |publisher=Indusind Bank Ltd |date=25 May 2013 |access-date=25 May 2013 }}</ref> [[Mumbai]] has the largest number of bank branches followed by [[New Delhi]] and [[Chennai]].<ref>{{cite web|url=http://www.allindiacodes.com/indusind-bank/ |title=Indusind Bank Ltd - Branch Details |publisher=All India Codes |date=25 May 2013 |access-date=25 May 2013 }}</ref> The bank has proposed to double its branch count to 1200 by March 2019.<ref name="Religare Retail Research">{{cite journal|title=IndusInd Retail Research Report - Religare Online|date=23 June 2014|url=http://www.religareonline.com/MediaGalary/religare_images/201406231400186527469-Master-Pick.pdf|access-date=16 September 2014|publisher=Religare Securities}}</ref>
In 2004, IndusInd Bank completed its merger with Ashok Leyland Finance, a [[vehicle financing]] company which was also part of the [[Hinduja Group]].<ref>{{cite news |title=RBI clears IndusInd merger with Ashok Leyland Fin |url=https://economictimes.indiatimes.com/rbi-clears-indusind-merger-with-ashok-leyland-fin/articleshow/742796.cms |access-date=1 March 2025 |work=The Economic Times |date=16 June 2004}}</ref>


== History ==
IndusInd Bank listed on the [[Luxembourg Stock Exchange]] in 2007 by issuing [[global depository receipts]] (GDRs) worth {{INRconvert|147|c|mode=historical|year=2007}}. In 2008, it issued fresh GDRs worth {{INRconvert|222|c|mode=historical|year=2008}}.<ref>{{cite news |title=IndusInd taps overseas market to raise Rs 222 cr |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/indusind-taps-overseas-market-to-raise-rs-222-cr/articleshow/3161733.cms |access-date=1 March 2025 |work=The Economic Times |date=25 June 2008}}</ref>
The bank began its operations on 17 April 1994 under the chairmanship of [[S. P. Hinduja]] with the primary objective of serving the NRI community.
 
In 2011, IndusInd Bank acquired [[Deutsche Bank]] India's loss-making credit cards division.<ref>{{cite news |title=Deutsche sells credit card biz to IndusInd |url=https://indianexpress.com/article/news-archive/web/deutsche-sells-credit-card-biz-to-indusind/ |access-date=1 March 2025 |work=The Indian Express |date=11 April 2011 |language=en}}</ref>
 
In October 2017, IndusInd Bank announced its acquisition of [[Bharat Financial Inclusion Limited]] (BFIL) for {{INRconvert|15000|c|mode=historical|year=2017}}.<ref>{{cite news |last1=Hetavkar |first1=Nikhat |title=IndusInd acquires Bharat Financial in Rs 15,000-cr deal |url=https://www.business-standard.com/article/companies/indusind-bank-approves-deal-to-buy-bharat-financial-inclusion-117101400389_1.html |publisher=[[Business Standard]] |date=October 15, 2017}}</ref>  The merger was officially completed in July 2019.<ref>{{cite news |title=IndusInd Bank-Bharat Financial merger to be effective from July 4 |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/indusind-bank-bharat-financial-merger-to-be-effective-from-july-4/articleshow/69863550.cms?from=mdr |publisher=[[The Economic Times]] |date=June 19, 2019}}</ref>
 
== Operations ==
As of March 2025, the bank has 41 million customers, 3,081 branches, and 3,027 [[Automated teller machine|ATMs]] in India.<ref>{{Cite web |date=2025-05-21 |title=Shadowed by financial discrepancies: IndusInd Bank posts largest-ever quarterly loss at Rs 2,328.92 crore |url=https://www.financialexpress.com/business/industry-shadowed-by-financial-discrepancies-indusind-bank-posts-loss-of-rs-2328-92-crore-for-q4fy25-3852671/ |access-date=2025-09-17 |website=The Financial Express |language=en}}</ref> It is an empaneled banker for [[Multi Commodity Exchange|MCX]]. Its shares have been a part of the [[NIFTY 50]] index since 1 April 2013.<ref>{{cite news |title=IndusInd Bank goes live on direct tax collection system of CBDT |url=https://www.cnbctv18.com/finance/indusind-bank-goes-live-on-direct-tax-collection-system-of-cbdt-16244521.htm |publisher=[[CNBC TV18]] |date=March 23, 2023}}</ref>


==Board of directors==
== Controversy ==
IndusInd Bank has appointed Sumant Kathpalia as the Managing Director and CEO with effect from Tuesday for a period of three years. The appointment was announced as Romesh Sobti retired as the MD & CEO of the Bank on Monday after a 12-year stint.


In a regulatory filing on Monday evening, the bank said that Kathpalia would take charge as 'Additional Director' on Tuesday and would be designated as MD and CEO.
=== Derivative accounting discrepancies ===
Between 2023 and 2025, IndusInd Bank identified accounting irregularities related to its [[Derivatives market|forex derivatives]] transactions, after a September 2023 directive from the [[Reserve Bank of India]] (RBI) mandated banks to adopt [[Mark-to-market accounting|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.<ref>{{Cite web |title=Sebi bars former IndusInd Bank CEO, four others from market for insider trading |url=https://www.livemint.com/companies/sebi-indusind-bank-sumant-kathpalia-insider-trading-11748442555094.html |website=Mint}}</ref>


R. Seshasayee, a chartered accountant, is the current chairman of the board. The other members on the board are Rajiv Agarwal, Kanchan Chitale, Shanker Annaswamy, T. T. Ram Mohan, Akila Krishnakumar, Arun Tiwari, and Siraj Chaudhry.<ref>{{cite web|date=25 May 2013|title=Indusind Bank Ltd - Board of Directors|url=http://www.indusind.com/indusind/wcms/en/home/top-links/about-us/board-of-directors/index.html|access-date=25 May 2013|publisher=Indusind Bank Limited}}</ref>
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.<ref>{{Cite web |date=2025-03-11 |title=IndusInd Bank shares crash 27% to record worst trading day ever. Here's why |url=https://www.indiatoday.in/business/story/indusind-bank-shares-crash-20-to-hit-52-week-low-why-is-it-falling-today-2691909-2025-03-11 |access-date=2025-03-11 |website=India Today |language=en}}</ref> 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.<ref>{{Cite web |date=2025-05-01 |title=IndusInd Bank CEO resigns |url=https://www.financialexpress.com/business/industry/nbspindusind-bank-ceo-resigns/3826942/ |access-date=2025-05-01 |website=Financialexpress |language=en}}</ref>


== Banking Services ==
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.<ref>{{Cite news |date=2025-05-16 |title=IndusInd Bank clarifies on new accounting irregularities, says Rs 674 crore 'incorrectly recorded as interest' |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/indusind-bank-clarifies-on-new-accounting-irregularities-says-rs-674-crore-incorrectly-recorded-as-interest/articleshow/121192583.cms?from=mdr |access-date=2025-06-27 |work=The Economic Times |issn=0013-0389}}</ref><ref>{{Cite news |last1=Mahanta |first1=Vinod |last2=Mehta |first2=Sangita |date=2025-05-15 |title=IndusInd Bank probes yet another accounting issue |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/indusind-bank-probes-yet-another-accounting-issue/articleshow/121170868.cms?from=mdr |access-date=2025-06-27 |work=The Economic Times |issn=0013-0389}}</ref><ref>{{Cite web |date=2025-05-27 |title=NFRA to investigate IndusInd Bank over accounting discrepancies in forex derivative |url=https://www.financialexpress.com/business/industry-nfra-to-investigate-indusind-bank-over-accounting-discrepancies-forex-derivative-3858967/ |access-date=2025-06-27 |website=The Financial Express |language=en}}</ref>


* Branch banking.
=== Insider trading investigation ===
* Consumer finance.
After the accounting discrepancies came to light, reports stated that [[Securities and Exchange Board of India|SEBI]] began investigating possible [[insider trading]] by senior officials of the bank.<ref>{{Cite web |title=Sebi probes insider trading at IndusInd Bank: Report |url=https://www.deccanherald.com/business/indias-markets-regulator-probes-insider-trading-at-indusind-bank-report-3464876 |access-date=2025-03-27 |website=Deccan Herald |language=en}}</ref><ref>{{Cite news |date=Mar 27, 2025 |title=Insider trading glare on senior IndusInd Bank officials. What do rules say? |url=https://www.business-standard.com/companies/news/insider-trading-glare-on-senior-indusind-bank-officials-what-do-rules-say-125032700415_1.html }}</ref> In May 2025, SEBI banned Kathpalia and four others from dealing in the share market,<ref>{{Cite web |last=Shaikh |first=Subhana |date=2025-05-28 |title=SEBI Bans IndusInd Bank Ex-CEO Sumant Kathpalia, Four Others From Securities Market |url=https://www.ndtvprofit.com/markets/sebi-bans-indusind-bank-ex-ceo-sumant-kathpalia-four-others-from-securities-market |access-date=2025-05-29 |website=NDTV Profit |language=en}}</ref> 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.<ref>{{Cite web |date=2025-05-28 |title=SEBI bars former IndusInd Bank CEO, top executives from stock market over insider trading charges - BusinessToday |url=https://www.businesstoday.in/markets/stocks/story/sebi-bars-former-indusind-bank-ceo-top-executives-from-stock-market-over-insider-trading-charges-478149-2025-05-28 |access-date=2025-06-27 |website=Business Today |language=en}}</ref>
* Corporate banking and finance.
* Commercial and transaction banking.
* Cash Management Services (CMS).
* [[Trade Services Utility]] (TSU)
* Depository operations
* Treasury operations
* Wealth management


==See also==
==See also==
 
{{Portal|Banks}}
* [[Banking in India]]
* [[Banking in India]]
* [[List of banks in India]]
* [[List of banks in India]]
* [[Reserve Bank of India]]
* [[Indian Financial System Code]]
* [[Indian Financial System Code]]
* [[List of largest banks]]
* [[List of companies of India]]
* [[Make in India]]
* [[IndusInd Bank Cyber City metro station]]


==Notes==
==Notes==
Line 71: Line 72:
==References==
==References==
{{Reflist}}
{{Reflist}}
== External links ==
* {{Official website|https://www.indusind.bank.in/}}


{{Nifty 200 companies}}
{{Nifty 200 companies}}
{{CNX Nifty companies}}
{{CNX Nifty companies}}
{{BSE Sensex}}
{{Banking in India}}
{{Banking in India}}


[[Category:IndusInd Bank| ]]
[[Category:Banks established in 1994]]
[[Category:Banks established in 1994]]
[[Category:Banks based in Mumbai]]
[[Category:Banks based in Mumbai]]
[[Category:1994 establishments in Maharashtra]]
[[Category:1994 establishments in Maharashtra]]
[[Category:NIFTY 50]]
[[Category:BSE SENSEX]]
[[Category:IndusInd Bank]]
[[Category:Indian companies established in 1994]]
[[Category:Indian companies established in 1994]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]
[[Category:Hinduja Group]]

Latest revision as of 09:55, 10 March 2026


IndusInd Bank Limited
Traded as
IndustryFinancial services
FoundedApril 1994 (32 years ago) (1994-04)
Founder(s)S. P. Hinduja
HeadquartersMumbai, Maharashtra,
India
Key people
Products
RevenueIncrease ₹56,351 crore (US$7.9 billion) (2025)[2]
Decrease ₹10,661 crore (US$1.5 billion) (2025)[2]
Decrease ₹2,575 crore (US$360 million) (2025)[2]
Total assetsIncrease ₹554,018 crore (US$78 billion) (2025)[2]
Total equityIncrease ₹64,835 crore (US$9.1 billion) (2025)[2]
OwnerHinduja Group (16.29%)[3]
Number of employees
44,974 (2025)[4][2]
SubsidiariesBFIL[5]
Capital ratio class39 = tel15.31% [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[edit | edit source]

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[edit | edit source]

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[edit | edit source]

Derivative accounting discrepancies[edit | edit source]

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[edit | edit source]

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[edit | edit source]

Notes[edit | edit source]

^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[edit | edit source]

  1. ↑ "Board of Directors Profiles – IndusInd Bank". www.indusind.bank.in.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "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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