Template:Infobox company IndusInd Bank Limited is an Indian banking and financial services company based in Mumbai.[1] It was established in April 1994 and promoted by the Hinduja Group.[2][3]
History
IndusInd Bank was among nine 'new-generation'Template:Ref label banks that obtained a banking license in 1994; it was started by S. P. Hinduja along with hundreds of NRI and other shareholders.[4] 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.[5][6] It launched its initial public offering in 1997.[7]
In 2004, IndusInd Bank completed its merger with Ashok Leyland Finance, a vehicle financing company which was also part of the Hinduja Group.[8]
IndusInd Bank listed on the Luxembourg Stock Exchange in 2007 by issuing global depository receipts (GDRs) worth Template:INRconvert. In 2008, it issued fresh GDRs worth Template:INRconvert.[9]
In 2011, IndusInd Bank acquired Deutsche Bank India's loss-making credit cards division.[10]
In October 2017, IndusInd Bank announced its acquisition of Bharat Financial Inclusion Limited (BFIL) for Template:INRconvert.[11] The merger was officially completed in July 2019.[12]
Operations
As of March 2025, the bank has 41 million customers, 3,081 branches, and 3,027 ATMs in India.[13] It is an empaneled banker for MCX. Its shares have been a part of the NIFTY 50 index since 1 April 2013.[14]
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.[15]
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.[16] 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.[17]
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.[18][19][20]
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.[21][22] In May 2025, SEBI banned Kathpalia and four others from dealing in the share market,[23] 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.[24]
See also
Notes
- Template:Note 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.[25]
References
- ↑ Annual Report 2018-19. Retrieved 16 February 2020.
- ↑ IndusInd Bank net profit up 15% to Rs 2,349 crore in Q4, Kochuveedan, Benn. The New Indian Express(2024-04-25). Retrieved 2025-03-21.
- ↑ ICICI Direct picks IndusInd Bank as a 'High Conviction Idea' for December; here's why, Deva, Pranati. Mint.
- ↑ IndusInd Bank debuts on Nifty; shares soar 3%. The Economic Times(1 April 2013). Retrieved 1 March 2025.
- ↑ IndusInd Bank Annual Report 2003-2004. BSE. Retrieved 1 March 2025.
- ↑ IndusInd Bank Ltd. - History. Business Standard India.
- ↑ Indusind Bank Net Up 24 Per Cent At Rs 91 Cr. Business Standard. Retrieved 1 March 2025.
- ↑ RBI clears IndusInd merger with Ashok Leyland Fin. The Economic Times(16 June 2004). Retrieved 1 March 2025.
- ↑ IndusInd taps overseas market to raise Rs 222 cr. The Economic Times(25 June 2008). Retrieved 1 March 2025.
- ↑ Deutsche sells credit card biz to IndusInd. The Indian Express(11 April 2011). Retrieved 1 March 2025.
- ↑ IndusInd acquires Bharat Financial in Rs 15,000-cr deal(October 15, 2017).
- ↑ IndusInd Bank-Bharat Financial merger to be effective from July 4(June 19, 2019).
- ↑ 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.
- ↑ IndusInd Bank goes live on direct tax collection system of CBDT(March 23, 2023).
- ↑ Sebi bars former IndusInd Bank CEO, four others from market for insider trading. Mint.
- ↑ IndusInd Bank shares crash 27% to record worst trading day ever. Here's why. India Today(2025-03-11). Retrieved 2025-03-11.
- ↑ IndusInd Bank CEO resigns. Financialexpress(2025-05-01). Retrieved 2025-05-01.
- ↑ 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.
- ↑ IndusInd Bank probes yet another accounting issue. The Economic Times(2025-05-15). Retrieved 2025-06-27.
- ↑ NFRA to investigate IndusInd Bank over accounting discrepancies in forex derivative. The Financial Express(2025-05-27). Retrieved 2025-06-27.
- ↑ Sebi probes insider trading at IndusInd Bank: Report. Deccan Herald. Retrieved 2025-03-27.
- ↑ Insider trading glare on senior IndusInd Bank officials. What do rules say?(Mar 27, 2025).
- ↑ SEBI Bans IndusInd Bank Ex-CEO Sumant Kathpalia, Four Others From Securities Market, Shaikh, Subhana. NDTV Profit(2025-05-28). Retrieved 2025-05-29.
- ↑ 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.
- ↑ Guidelines on entry of new banks in the private sector. Reserve Bank of India(3 January 2001). Retrieved 7 November 2020.
External links
Template:Nifty 200 companies Template:CNX Nifty companies Template:Banking in India