IndusInd Bank promoter assures full support, asks shareholders to not panic
This story was originally published at 16:22 IST on 11 March 2025
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MUMBAI – Even as shares of IndusInd Bank fell over 27% to INR 655.95 on Tuesday after the bank informed it had found discrepancies in its derivative portfolio accounts, promoter Ashok Hinduja asked shareholders to remain calm and not panic.
In an analyst call post market hours on Monday, the bank said the discrepancies were related to internal positions taken to hedge forex deposits or borrowings. The bank has estimated a hit of 2.35% on its net worth. As on Dec. 31, IndusInd Bank's net worth was INR 651.02 billion. As such, an adverse impact of 2.35% amounts to about INR 15.30 billion.
"My concern is how the market has taken so much so that over 16000 cr, over $2 billion in less than 2 hours, it has impacted the market cap. The market situation has gone so bad. Our full support to the bank is there," Hinduja, chairman of IndusInd International Holdings, told ET Now on Tuesday. He added that the issues in the accounts were highlighted by the bank's management and not auditors, and that the market should appreciate the bank's transparency.
He also said the bank's capital adequecy ratio would be strong at over 15% even after the recent provisioning. "As and when further capital is required, promoter will always be with the company...Once we get RBI approval, we will immediately infuse more equity in bank as required."
IndusInd Bank's net profit for Oct-Dec declined 39% on year to INR 14.01 billion. For the nine months ended December, the net profit fell 26% on year to INR 49.04 billion. The Basel-III capital adequacy ratio of the bank was at 16.46% as on Dec. 31. The tier-1 capital adequacy ratio of the bank was at 15.18%, and the tier-II capital adequacy ratio was at 1.28% as on Dec. 31. End
Reported by Kshipra Petkar
Edited by Avishek Dutta
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