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IndusInd Bank
Indian private sector bank From Wikipedia, the free encyclopedia
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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]
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History
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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 ₹147 crore (US$35.55 million). In 2008, it issued fresh GDRs worth ₹222 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 ₹15,000 crore (US$2.3 billion).[16] The merger was officially completed in July 2019.[17]
In April 2024, it piloted the Reserve Bank of India's programmable Central Bank Digital Currency (CBDC), in collaboration with Circularity Innovation Hub, targeting the disbursement of CBDC to farmers in Maharashtra's Ratnagiri district in exchange for carbon credits.[18]
On 11 March 2025, IndusInd Bank's shares crashed over 27% after it disclosed discrepancies in its forex derivatives portfolio, with analysts raising questions on the bank's internal controls.[19] Reports stated that SEBI also began investigating possible insider trading by senior officials of the bank.[20][21] In response to the discrepancies, IndusInd Bank’s Managing Director and CEO, Sumant Kathpalia, resigned in April 2025, taking moral responsibility for accounting irregularities in the bank’s derivatives portfolio. His resignation followed that of Deputy CEO Arun Khurana, who stepped down a day earlier. [22] SEBI also banned the former CEO of the bank, Sumant Kathpalia, and four others from dealing in the share market.[23]
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Operations
As of December 2024, the bank has 42 million customers, 3,063 branches, and 2,993 ATMs in India.[24] It is an empaneled banker for MCX. Its shares have been a part of the NIFTY 50 index since 1 April 2013.[25]
Controversy
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Derivative accounting discrepancies
Between 2023 and 2025, IndusInd Bank came under regulatory scrutiny following the identification of accounting irregularities related to its foreign exchange derivative transactions. The matter arose after a September 2023 directive from the Reserve Bank of India (RBI) mandating banks to adopt mark-to-market valuation for derivatives. An internal review conducted later that month revealed discrepancies in the valuation of certain legacy derivative contracts over multiple years. Initial estimates in December 2023 placed the potential financial impact at ₹1,572 crore, which was later revised upward to ₹2,361 crore by May 2024. Independent audits by PwC and Grant Thornton confirmed the material nature of these discrepancies, 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.[26][27][28]
Insider trading investigation
In May 2025, SEBI took action against five former top executives of IndusInd Bank, including the CEO Sumant Kathpalia. SEBI accused them of selling shares before the bank publicly announced the losses, avoiding about ₹20 crore in losses. SEBI froze their accounts and barred them from trading while the investigation continues.[29][30]
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