IndusInd Bank’s promoter committed to support with equity if required for business growth: Ashok Hinduja

Ashok Hinduja

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26 Aug, 2025 12:21

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The promoter of IndusInd Bank, IndusInd International Holdings is committed to support the lender if required with equity for business growth, Chairman Ashok P Hinduja said on May 22.

“Though the Capital Adequacy of the Bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the Bank, as it has done over the past 30 years,” Hinduja said in a statement.

These comments came after the bank posted a net loss of Rs 2,328.92 crore for the fourth quarter of financial year 2024–25. This marked its first earnings report since the bank unearthed major accounting discrepancies, now bracketed as fraud, which triggered regulatory scrutiny, top-level resignations, and multiple audits.

The bank’s board of directors in a post-earnings call with analysts said it suspects a case of fraud involving certain employees who played a key role in financial reporting and accounting. The board has initiated all actions required under applicable laws, including reporting the matter to regulatory and investigative authorities.

Hinduja also said that the coordinated efforts of 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.

“The stance of the Regulator in addressing the issues in a very orderly manner with suitable guidance, as demonstrated by them in past for the banking sector, is commendable,” Hinduja added.

IndusInd Bank also said its internal audit department has revealed on May 21 that Rs 172.58 crore had been wrongly recorded as fee income in its microfinance business over three consecutive quarters ending December 2024. The discrepancy was reversed in the fourth quarter of FY25, contributing to the reported loss.