IndusInd Bank

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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 ā‚¹56,351 crore (US$7.9 billion) (2025)[2]
Decrease ā‚¹10,661 crore (US$1.5 billion) (2025)[2]
Decrease ā‚¹2,575 crore (US$360 million) (2025)[2]
Total assetsIncrease ā‚¹554,018 crore (US$78 billion) (2025)[2]
Total equityIncrease ā‚¹64,835 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 ā‚¹147 crore (US$35.55 million). In 2008, it issued fresh GDRs worth ā‚¹222 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 ā‚¹15,000 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 ā‚¹1,572 crore in December 2023, which was revised upward to ā‚¹2,361 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 ā‚¹1,960 crore. In April 2025, the bank reported a reduction in net worth of ā‚¹1,979 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 ā‚¹20 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. ā†‘ "Board of Directors Profiles ā€“ IndusInd Bank". www.indusind.bank.in.
  2. ā†‘ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "FY 25 Results"
  3. ā†‘ Angre, Alekh (19 March 2025). "IndusInd Bank promoters see stock dip as investment opportunity". The Economic Times. Retrieved 25 March 2025.
  4. ā†‘ "Annual Report 2024-2025" (PDF). www.indusind.bank.in.
  5. ā†‘ "IndusInd Bank adds 2% on NCLT nod for merger with BFIL". moneycontrol. Retrieved 25 April 2019.
  6. ā†‘ "Annual Report 2018-19" (PDF). www.indusind.bank.in. Retrieved 16 February 2020.
  7. ā†‘ 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. ā†‘ Deva, Pranati. "ICICI Direct picks IndusInd Bank as a 'High Conviction Idea' for December; here's why". Mint.
  9. ā†‘ "IndusInd Bank debuts on Nifty; shares soar 3%". The Economic Times. 1 April 2013. Retrieved 1 March 2025.
  10. ā†‘ "IndusInd Bank Annual Report 2003-2004" (PDF). BSE. Retrieved 1 March 2025.
  11. ā†‘ "IndusInd Bank Ltd. - History". Business Standard India.
  12. ā†‘ "Indusind Bank Net Up 24 Per Cent At Rs 91 Cr". Business Standard. Retrieved 1 March 2025.
  13. ā†‘ "RBI clears IndusInd merger with Ashok Leyland Fin". The Economic Times. 16 June 2004. Retrieved 1 March 2025.
  14. ā†‘ "IndusInd taps overseas market to raise Rs 222 cr". The Economic Times. 25 June 2008. Retrieved 1 March 2025.
  15. ā†‘ "Deutsche sells credit card biz to IndusInd". The Indian Express. 11 April 2011. Retrieved 1 March 2025.
  16. ā†‘ Hetavkar, Nikhat (15 October 2017). "IndusInd acquires Bharat Financial in Rs 15,000-cr deal". Business Standard.
  17. ā†‘ "IndusInd Bank-Bharat Financial merger to be effective from July 4". The Economic Times. 19 June 2019.
  18. ā†‘ "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. ā†‘ "IndusInd Bank goes live on direct tax collection system of CBDT". CNBC TV18. 23 March 2023.
  20. ā†‘ "Sebi bars former IndusInd Bank CEO, four others from market for insider trading". Mint.
  21. ā†‘ "IndusInd Bank shares crash 27% to record worst trading day ever. Here's why". India Today. 11 March 2025. Retrieved 11 March 2025.
  22. ā†‘ "IndusInd Bank CEO resigns". Financialexpress. 1 May 2025. Retrieved 1 May 2025.
  23. ā†‘ "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. ā†‘ 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. ā†‘ "NFRA to investigate IndusInd Bank over accounting discrepancies in forex derivative". The Financial Express. 27 May 2025. Retrieved 27 June 2025.
  26. ā†‘ "Sebi probes insider trading at IndusInd Bank: Report". Deccan Herald. Retrieved 27 March 2025.
  27. ā†‘ "Insider trading glare on senior IndusInd Bank officials. What do rules say?". 27 March 2025.
  28. ā†‘ 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. ā†‘ "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. ā†‘ "Guidelines on entry of new banks in the private sector" (PDF). Reserve Bank of India. 3 January 2001. Retrieved 7 November 2020.

External links[edit | edit source]

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