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Informist, Thursday, May 22, 2025

 

NEW DELHI – IndusInd International Holdings Ltd., promoter of IndusInd Bank, is committed to supporting the bank with equity if the need arises, Ashok P. Hinduja, chairman of IndusInd International, said Thursday. "Though the capital adequacy of the bank is quite healthy for business growth, should any further equity be required, IndusInd International, as the promoter of IndusInd Bank, remains committed to supporting the bank, as it has done over the past 30 years," he said in a statement. 

 

Hinduja's statement came a day after IndusInd Bank announced its results for the March quarter. It reported a net loss of INR 22.36 billion, against a profit of INR 23.47 billion a year ago. This was the first quarterly loss the bank had posted since the final quarter of the financial year ended Mar. 31, 2011.

 

The lender has been mired in controversy since March after reporting discrepancies in its derivatives accounting book, microfinance portfolio, and a few other matters where the bank incorrectly classified certain balances in "other assets and liabilities" as interest income instead of other income.

 

IndusInd Bank's Chairman Sunil Mehta said Wednesday that these irregularities indicated inadequate emphasis on accounting analysis and violation of governance norms, internal controls, and mechanisms for disclosure and reporting to the board. He added that the board was working with the bank's management to bring about a cultural shift to achieve higher standards of ethics and governance.

 

Hinduja expressed his continued, unequivocal trust in the chairman and board of directors of IndusInd Bank for their appropriate, swift actions to address discrepancies and areas of concern. He added that this would lead to higher standards of transparency and governance, and help rebuild trust in the bank.

 

"The coordinated efforts of (the) current management under the guidance and monitoring of the board and other stakeholders have ensured that the bank's business remains healthy, with robust capital adequacy," Hinduja said. "The continued confidence of the customers in the bank shows their trust in the institution, which has always been upheld."

 

He also commended the stance of the regulator in addressing issues relating to IndusInd Bank in an orderly manner with suitable guidance. Thursday, IndusInd Bank's shares ended nearly 2% higher at INR 785 on the National Stock Exchange.  End

 

Reported by Pratiksha

Edited by Nishant Maher

 

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