INDUSINDBK
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Recent events
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Indusind Bank Inks MoU With DPIIT
May 20 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK INKS MOU WITH DPIIT
Further company coverage: INBK.NS
(([email protected];;))
May 20 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK INKS MOU WITH DPIIT
Further company coverage: INBK.NS
(([email protected];;))
Indusind Bank Signs MoU With AIC STPINEXT
May 19 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK SIGNS MOU WITH AIC STPINEXT
TO DELIVER TAILORED BANKING SOLUTIONS TO SUPPORT EARLY-STAGE START-UPS
Source text: [ID:]
Further company coverage: INBK.NS
(([email protected];;))
May 19 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK SIGNS MOU WITH AIC STPINEXT
TO DELIVER TAILORED BANKING SOLUTIONS TO SUPPORT EARLY-STAGE START-UPS
Source text: [ID:]
Further company coverage: INBK.NS
(([email protected];;))
IndusInd Bank finds $79 million incorrectly recorded as interest in microfinance unit
May 15 (Reuters) - IndusInd Bank said on Thursday that an internal audit of its microfinance business showed it had incorrectly recorded 6.74 billion rupees ($79 million) as interest for three quarters of fiscal 2025.
The amount was fully reversed on January 10, 2025, the bank said in an exchange filing.
($1 = 85.4620 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Anil D'Silva)
(([email protected]; Mobile: +91 9591011727;))
May 15 (Reuters) - IndusInd Bank said on Thursday that an internal audit of its microfinance business showed it had incorrectly recorded 6.74 billion rupees ($79 million) as interest for three quarters of fiscal 2025.
The amount was fully reversed on January 10, 2025, the bank said in an exchange filing.
($1 = 85.4620 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Anil D'Silva)
(([email protected]; Mobile: +91 9591011727;))
Moody's Ratings Affirms Indusind's Ratings, Changes Outlook To Negative
May 9 (Reuters) -
MOODY'S RATINGS: AFFIRMS INDUSIND'S RATINGS, CHANGES OUTLOOK TO NEGATIVE
MOODY'S RATINGS: DOWNGRADES INDUSIND'S STANDALONE CREDIT PROFILE
Source text: ID:nMDY29jSZp
Further company coverage: INBK.NS
(([email protected];;))
May 9 (Reuters) -
MOODY'S RATINGS: AFFIRMS INDUSIND'S RATINGS, CHANGES OUTLOOK TO NEGATIVE
MOODY'S RATINGS: DOWNGRADES INDUSIND'S STANDALONE CREDIT PROFILE
Source text: ID:nMDY29jSZp
Further company coverage: INBK.NS
(([email protected];;))
EXCLUSIVE-Forensic review found India's IndusInd Bank executives traded shares before accounting disclosure, document shows
India's 5th largest private sector bank in crisis over accounting
Bank CEO stepped down after accounting discrepancies disclosed
Investigation finds lapses were known internally for years
IndusInd financial health is seen as satisfactory
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, May 8 (Reuters) - A forensic review by audit and advisory firm Grant Thornton found two executives of India's IndusInd Bank traded in its shares while they were aware of accounting lapses at the bank but before those were made public, a document reviewed by Reuters showed.
India's fifth-largest private sector bank disclosed in March that years of incorrect accounting of internal derivative trades have led to a $230 million hole in its $60.8 billion balance sheet. Its CEO Sumant Kathpalia and deputy Arun Khurana stepped down last month.
Kathpalia said in his resignation letter he was taking "moral responsibility", while Khurana resigned citing "unfortunate developments". Neither explicitly admitted or denied any wrongdoing.
Grant Thornton, which the bank hired to conduct an independent forensic investigation, found as a result of its review of internal accounts and communications that there were indications Kathpalia and Khurana traded in shares of IndusInd "during a period of seeming non-disclosure," a summary of the findings showed.
"Considering that employees had knowledge of incorrect accounting and/or its impact but traded in shares of IBL during the period may also require a determination from an insider trading perspective," the summary said.
Kathpalia and Khurana did not respond to repeated calls and text messages requesting comment. The document did not name any other executives in the context of share trading, but it mentioned one other executive's handling of the information about the accounting lapses.
India's markets regulator SEBI, IndusInd Bank and Grant Thornton also did not respond to requests for comment.
The summary of Grant Thornton's findings did not disclose further details of the share trading or offer any conclusions about its nature.
A Reuters review of employee trading data provided by India's National Stock Exchange showed that between March 2024 and IndusInd Bank's March 10, 2025 disclosure, then CEO Kathpalia sold the bank's shares worth 283.48 million rupees ($3.3 million) and bought 102.71 million rupees' worth of shares. His then deputy, Khurana, sold 320.72 million Indian rupees worth of IndusInd Bank shares during that period.
The summary document also noted "less than adequate" emphasis on "accounting analysis and rigour", has not been made public.
Two people familiar with the matter said Grant Thornton has shared the report with the bank and the Reserve Bank of India, which oversees the banking industry.
IndusInd Bank said in March that following an internal review it expected a 2.35% hit to its net worth because of internal derivatives trades that did not comply with central bank rules.
Reuters reported later that month that it hired Grant Thornton to investigate the accounting lapses and the bank itself said in an April 27 filing that a report by "independent professional firm" had identified "incorrect accounting" and it was "taking necessary steps to fix accountability."
The summary of Grant Thornton's findings said many finance and treasury executives at the bank were aware of the accounting issues and the Market Risk team flagged its concerns way back in May 2015.
"We also note other emails and communications that indicate suggestions to delete pertinent communications as well as suppressing sharing of information on this aspect," the document said, without naming any individuals in that context.
Problems at the bank were amplified by "relatively manual accounting and computations", missing or inadequate supporting documentation and inadequate standard operating procedures, it said.
IndusInd Bank shares, which tumbled after the March 10 disclosure, are now down 8% following the central bank's assurances that the lender was well capitalised and its financial position remained satisfactory.
The central bank has also approved the establishment of a committee of executives to oversee its operations in the absence of a new CEO.
(Reporting by Aditya Kalra and Siddhi Nayak
Editing by Tomasz Janowski)
((Email: [email protected]; X: @adityakalra;))
India's 5th largest private sector bank in crisis over accounting
Bank CEO stepped down after accounting discrepancies disclosed
Investigation finds lapses were known internally for years
IndusInd financial health is seen as satisfactory
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, May 8 (Reuters) - A forensic review by audit and advisory firm Grant Thornton found two executives of India's IndusInd Bank traded in its shares while they were aware of accounting lapses at the bank but before those were made public, a document reviewed by Reuters showed.
India's fifth-largest private sector bank disclosed in March that years of incorrect accounting of internal derivative trades have led to a $230 million hole in its $60.8 billion balance sheet. Its CEO Sumant Kathpalia and deputy Arun Khurana stepped down last month.
Kathpalia said in his resignation letter he was taking "moral responsibility", while Khurana resigned citing "unfortunate developments". Neither explicitly admitted or denied any wrongdoing.
Grant Thornton, which the bank hired to conduct an independent forensic investigation, found as a result of its review of internal accounts and communications that there were indications Kathpalia and Khurana traded in shares of IndusInd "during a period of seeming non-disclosure," a summary of the findings showed.
"Considering that employees had knowledge of incorrect accounting and/or its impact but traded in shares of IBL during the period may also require a determination from an insider trading perspective," the summary said.
Kathpalia and Khurana did not respond to repeated calls and text messages requesting comment. The document did not name any other executives in the context of share trading, but it mentioned one other executive's handling of the information about the accounting lapses.
India's markets regulator SEBI, IndusInd Bank and Grant Thornton also did not respond to requests for comment.
The summary of Grant Thornton's findings did not disclose further details of the share trading or offer any conclusions about its nature.
A Reuters review of employee trading data provided by India's National Stock Exchange showed that between March 2024 and IndusInd Bank's March 10, 2025 disclosure, then CEO Kathpalia sold the bank's shares worth 283.48 million rupees ($3.3 million) and bought 102.71 million rupees' worth of shares. His then deputy, Khurana, sold 320.72 million Indian rupees worth of IndusInd Bank shares during that period.
The summary document also noted "less than adequate" emphasis on "accounting analysis and rigour", has not been made public.
Two people familiar with the matter said Grant Thornton has shared the report with the bank and the Reserve Bank of India, which oversees the banking industry.
IndusInd Bank said in March that following an internal review it expected a 2.35% hit to its net worth because of internal derivatives trades that did not comply with central bank rules.
Reuters reported later that month that it hired Grant Thornton to investigate the accounting lapses and the bank itself said in an April 27 filing that a report by "independent professional firm" had identified "incorrect accounting" and it was "taking necessary steps to fix accountability."
The summary of Grant Thornton's findings said many finance and treasury executives at the bank were aware of the accounting issues and the Market Risk team flagged its concerns way back in May 2015.
"We also note other emails and communications that indicate suggestions to delete pertinent communications as well as suppressing sharing of information on this aspect," the document said, without naming any individuals in that context.
Problems at the bank were amplified by "relatively manual accounting and computations", missing or inadequate supporting documentation and inadequate standard operating procedures, it said.
IndusInd Bank shares, which tumbled after the March 10 disclosure, are now down 8% following the central bank's assurances that the lender was well capitalised and its financial position remained satisfactory.
The central bank has also approved the establishment of a committee of executives to oversee its operations in the absence of a new CEO.
(Reporting by Aditya Kalra and Siddhi Nayak
Editing by Tomasz Janowski)
((Email: [email protected]; X: @adityakalra;))
Exits of top two at India's IndusInd Bank followed external inquiry
Bank temporarily being managed by committee overseen by board
Accounting errors cost bank $230 million, bank has said
Bank has yet to report earnings for year ended March 31
Recasts, updates throughout with details, sourcing and closing share price
By Siddhi Nayak
MUMBAI, April 30 (Reuters) - The top two executives at India's IndusInd Bank INBK.NS resigned this week after an external investigation found they were responsible for improper derivative accounting, three sources familiar with the findings said.
The bank's CEO Sumant Kathpalia resigned on Tuesday taking "moral responsibility" for the lapses, a day after his deputy Arun Khurana stepped down, citing "unfortunate developments" caused by incorrect accounting of internal derivative trades under his leadership.
The report of the investigation, conducted by Grant Thornton and submitted to the bank's board last week, said the accounting errors had reduced the bank's balance sheet by $230 million, the bank has disclosed.
One of the sources said the report also said the CEO and the deputy CEO had been aware of the lapses and had the power to resolve them, but did not do so.
It was not clear who commissioned the Grant Thornton report, but one of the sources said the Reserve Bank of India took it as evidence the two executives had to resign.
The RBI wanted to understand what transpired and who was accountable in the utmost detail before any decision regarding senior resignations, said the second source.
None of the sources wished to be identified because they were not authorised to speak with the media and the external review panel's report has not been made public.
The RBI, IndusInd Bank and Grant Thornton did not reply to a Reuters' email seeking comment. Kathpalia and Khurana did not immediately respond to messages.
With a balance sheet of $60.80 billion as of March 2024, IndusInd Bank is India's fifth largest private lender.
UK-based billionaire family Hindujas holds a 15.8% stake in the bank that has yet to report its financials for the year ended March 31, 2025.
Reuters reporting found the quest for profits combined with lax controls led to incorrect accounting practices that lasted for years.
TEMPORARY COMMITTEE
IndusInd Bank fell 3% after the market open on Wednesday, but ended the session 0.2% higher, on market expectations a new management team will soon be in place.
In the interim, the bank is being managed by a committee of senior executives overseen by the board.
"The formation of the committee is to ensure that there is no confidence crisis or depositor panic. This is a temporary measure till a CEO is announced," a separate source aware of the central bank's thinking said.
A credible management change can benefit the bank and investors, brokerage Jefferies said in a note, adding the floor for the stock price "may not be too far".
Analysts' median 12-month price target on the stock is 855 rupees, which implies a roughly 2% upside to Wednesday's closing price of about 838.4 rupees, according to LSEG data.
The average rating of these 36 analysts is to "hold" the stock, compared with "buy" before the lapses were disclosed, LSEG data shows.
($1 = 84.6990 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Rashmi Aich, Savio D'Souza and Barbara Lewis)
(([email protected]; x.com/siddhiVnayak;))
Bank temporarily being managed by committee overseen by board
Accounting errors cost bank $230 million, bank has said
Bank has yet to report earnings for year ended March 31
Recasts, updates throughout with details, sourcing and closing share price
By Siddhi Nayak
MUMBAI, April 30 (Reuters) - The top two executives at India's IndusInd Bank INBK.NS resigned this week after an external investigation found they were responsible for improper derivative accounting, three sources familiar with the findings said.
The bank's CEO Sumant Kathpalia resigned on Tuesday taking "moral responsibility" for the lapses, a day after his deputy Arun Khurana stepped down, citing "unfortunate developments" caused by incorrect accounting of internal derivative trades under his leadership.
The report of the investigation, conducted by Grant Thornton and submitted to the bank's board last week, said the accounting errors had reduced the bank's balance sheet by $230 million, the bank has disclosed.
One of the sources said the report also said the CEO and the deputy CEO had been aware of the lapses and had the power to resolve them, but did not do so.
It was not clear who commissioned the Grant Thornton report, but one of the sources said the Reserve Bank of India took it as evidence the two executives had to resign.
The RBI wanted to understand what transpired and who was accountable in the utmost detail before any decision regarding senior resignations, said the second source.
None of the sources wished to be identified because they were not authorised to speak with the media and the external review panel's report has not been made public.
The RBI, IndusInd Bank and Grant Thornton did not reply to a Reuters' email seeking comment. Kathpalia and Khurana did not immediately respond to messages.
With a balance sheet of $60.80 billion as of March 2024, IndusInd Bank is India's fifth largest private lender.
UK-based billionaire family Hindujas holds a 15.8% stake in the bank that has yet to report its financials for the year ended March 31, 2025.
Reuters reporting found the quest for profits combined with lax controls led to incorrect accounting practices that lasted for years.
TEMPORARY COMMITTEE
IndusInd Bank fell 3% after the market open on Wednesday, but ended the session 0.2% higher, on market expectations a new management team will soon be in place.
In the interim, the bank is being managed by a committee of senior executives overseen by the board.
"The formation of the committee is to ensure that there is no confidence crisis or depositor panic. This is a temporary measure till a CEO is announced," a separate source aware of the central bank's thinking said.
A credible management change can benefit the bank and investors, brokerage Jefferies said in a note, adding the floor for the stock price "may not be too far".
Analysts' median 12-month price target on the stock is 855 rupees, which implies a roughly 2% upside to Wednesday's closing price of about 838.4 rupees, according to LSEG data.
The average rating of these 36 analysts is to "hold" the stock, compared with "buy" before the lapses were disclosed, LSEG data shows.
($1 = 84.6990 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Rashmi Aich, Savio D'Souza and Barbara Lewis)
(([email protected]; x.com/siddhiVnayak;))
IndusInd Bank's deputy CEO Arun Khurana resigns amid accounting blunder
Updates with details throughout
MUMBAI/BENGALURU April 28 (Reuters) - India's IndusInd Bank INBK.NS on Monday announced the resignation of deputy CEO Arun Khurana, weeks after the private lender disclosed accounting lapses in its derivatives portfolio that triggered a rout in its shares .
In light of the recent accounting issues related to internal derivative trades , "I having oversight of the Treasury Front office function, as the whole time director, Deputy CEO and a part of senior management of the bank, hereby resign, effective immediately," Khurana wrote in a letter to IndusInd Bank's board that was included in a stock market filing.
IndusInd, India's fifth-largest private lender with a balance sheet of $63 billion, said on Sunday it would take a $229.56 million hit to its accounts for the financial year ended March 31, 2025 because of the incorrect treatment of derivatives going back several years.
Based on the findings of an external agency's probe, IndusInd has estimated an impact of 2.27% on its net worth as of December 2024.
Khurana headed the global markets division of the bank, which included the derivatives portfolio.
IndusInd shares have fallen nearly 8% since March 10, when the lender first disclosed the impact on its net worth from the discrepancies.
Last week, IndusInd named Santosh Kumar as its deputy CFO. Kumar will head the finance and accounts functions till IndusInd appoints a full-time CFO.
The Reserve Bank of India had urged CEO Sumant Kathpalia and Khurana to step down following the accounting lapses, as soon as replacements were found and approved by the central bank, Reuters reported last month.
The bank is due to report earnings for the full financial year before May 15, but is yet to disclose the date for the release.
(Reporting by Siddhi Nayak in Mumbai and Ananta Agarwal in Bengaluru; Editing by Anil D'Silva)
(([email protected];))
Updates with details throughout
MUMBAI/BENGALURU April 28 (Reuters) - India's IndusInd Bank INBK.NS on Monday announced the resignation of deputy CEO Arun Khurana, weeks after the private lender disclosed accounting lapses in its derivatives portfolio that triggered a rout in its shares .
In light of the recent accounting issues related to internal derivative trades , "I having oversight of the Treasury Front office function, as the whole time director, Deputy CEO and a part of senior management of the bank, hereby resign, effective immediately," Khurana wrote in a letter to IndusInd Bank's board that was included in a stock market filing.
IndusInd, India's fifth-largest private lender with a balance sheet of $63 billion, said on Sunday it would take a $229.56 million hit to its accounts for the financial year ended March 31, 2025 because of the incorrect treatment of derivatives going back several years.
Based on the findings of an external agency's probe, IndusInd has estimated an impact of 2.27% on its net worth as of December 2024.
Khurana headed the global markets division of the bank, which included the derivatives portfolio.
IndusInd shares have fallen nearly 8% since March 10, when the lender first disclosed the impact on its net worth from the discrepancies.
Last week, IndusInd named Santosh Kumar as its deputy CFO. Kumar will head the finance and accounts functions till IndusInd appoints a full-time CFO.
The Reserve Bank of India had urged CEO Sumant Kathpalia and Khurana to step down following the accounting lapses, as soon as replacements were found and approved by the central bank, Reuters reported last month.
The bank is due to report earnings for the full financial year before May 15, but is yet to disclose the date for the release.
(Reporting by Siddhi Nayak in Mumbai and Ananta Agarwal in Bengaluru; Editing by Anil D'Silva)
(([email protected];))
India’s IndusInd Bank to take $230 million hit in 2024-25 accounts
NEW DELHI, April 27 (Reuters) - IndusInd Bank INBK.NS, India's fifth-largest private lender by assets, said on Sunday it would take a $229.56 million hit to its accounts for the financial year ended March 31, 2025 because of the incorrect treatment of derivatives going back several years.
The bank is due to report earnings for the full financial year before May 15, but is yet to disclose the date for the release.
The likely hit is similar to what was disclosed by the bank in April but has been finalised after internal and external reviews of the accounting discrepancy in its currency derivatives book, dating back six years.
On Sunday, the Indian lender said the external probe had concluded and responsibility was being fixed on the people responsible for the lapses.
“The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,” it added, without giving details.
It added that internal derivative trades had been discontinued by the company since April. The bank's stock closed 0.32% higher on Friday.
(Reporting by Ira Dugal; Writing by Arpan Chaturvedi; Editing by David Holmes)
(([email protected];))
NEW DELHI, April 27 (Reuters) - IndusInd Bank INBK.NS, India's fifth-largest private lender by assets, said on Sunday it would take a $229.56 million hit to its accounts for the financial year ended March 31, 2025 because of the incorrect treatment of derivatives going back several years.
The bank is due to report earnings for the full financial year before May 15, but is yet to disclose the date for the release.
The likely hit is similar to what was disclosed by the bank in April but has been finalised after internal and external reviews of the accounting discrepancy in its currency derivatives book, dating back six years.
On Sunday, the Indian lender said the external probe had concluded and responsibility was being fixed on the people responsible for the lapses.
“The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,” it added, without giving details.
It added that internal derivative trades had been discontinued by the company since April. The bank's stock closed 0.32% higher on Friday.
(Reporting by Ira Dugal; Writing by Arpan Chaturvedi; Editing by David Holmes)
(([email protected];))
India's IndusInd bank jumps on block deals at premium
** Shares of IndusInd Bank Ltd INBK.NS rise 3.2% to 819.50 rupees
** About 355,000 shares change hands in four separate block deals, between 819.05 rupees and 835.35 rupees - National Stock Exchange data
** Block deals at a premium to previous closing price of 794.20 rupees
** Private sector bank top gainer on blue-chip Nifty 50 .NSEI index
** Analysts tracking stock rate it "hold" on avg - data compiled by LSEG
** Stock down ~9% since it reported accounting lapse on March 10 that led to a net worth hit
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Shares of IndusInd Bank Ltd INBK.NS rise 3.2% to 819.50 rupees
** About 355,000 shares change hands in four separate block deals, between 819.05 rupees and 835.35 rupees - National Stock Exchange data
** Block deals at a premium to previous closing price of 794.20 rupees
** Private sector bank top gainer on blue-chip Nifty 50 .NSEI index
** Analysts tracking stock rate it "hold" on avg - data compiled by LSEG
** Stock down ~9% since it reported accounting lapse on March 10 that led to a net worth hit
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
India's IndusInd Bank says conducting internal review of microfinance business
Adds details throughout
BENGALURU, April 22 (Reuters) - IndusInd Bank's INBK.NS internal audit team was reviewing "certain concerns" in the Indian lender's microfinance business, the company said on Tuesday, about a month after it reported discrepancies in its currency derivatives.
The bank, however, stopped short of disclosing what concerns were being investigated in the microfinance unit.
The unit, which accounts for 9% of the bank's total loans, has been grappling with elevated bad loans since the last few quarters.
Earlier in the day, The Economic Times newspaper reported that the private lender had appointed EY to conduct a forensic audit to probe a 6-billion-rupee ($70.5 million) discrepancy in the microfinance portfolio.
The lender said in a statement that it had engaged EY to assist with the review, but did not refer to the amount mentioned by the newspaper.
In March, IndusInd reported a $175 million accounting discrepancy in its currency derivatives book, dating back six years, and appointed an external agency to review the findings.
IndusInd's shares, which have fallen 13% since the derivative accounting lapse was disclosed, closed 5% lower on Tuesday.
($1 = 85.1580 Indian rupees)
(Reporting by Nishit Navin; Editing by Sonia Cheema)
(([email protected];))
Adds details throughout
BENGALURU, April 22 (Reuters) - IndusInd Bank's INBK.NS internal audit team was reviewing "certain concerns" in the Indian lender's microfinance business, the company said on Tuesday, about a month after it reported discrepancies in its currency derivatives.
The bank, however, stopped short of disclosing what concerns were being investigated in the microfinance unit.
The unit, which accounts for 9% of the bank's total loans, has been grappling with elevated bad loans since the last few quarters.
Earlier in the day, The Economic Times newspaper reported that the private lender had appointed EY to conduct a forensic audit to probe a 6-billion-rupee ($70.5 million) discrepancy in the microfinance portfolio.
The lender said in a statement that it had engaged EY to assist with the review, but did not refer to the amount mentioned by the newspaper.
In March, IndusInd reported a $175 million accounting discrepancy in its currency derivatives book, dating back six years, and appointed an external agency to review the findings.
IndusInd's shares, which have fallen 13% since the derivative accounting lapse was disclosed, closed 5% lower on Tuesday.
($1 = 85.1580 Indian rupees)
(Reporting by Nishit Navin; Editing by Sonia Cheema)
(([email protected];))
India's IndusInd Bank jumps nearly 6% after naming deputy CFO
** Shares of IndusInd Bank Ltd INBK.NS jump 5.7% to 840.20 rupees
** Private lender on Thursday appointed Santosh Kumar as its deputy CFO after deputy CEO Arun Khurana's term as finance chief ended
** Reserve Bank of India had urged Khurana to step down following the accounting lapses, Reuters reported
** INBK at its highest since March 10, when bank first reported discrepancies in its accounts relating to derivative deals that led to a net worth hit
** INBK top gainer on Nifty 50 .NSEI which is up 0.9%
** Analysts tracking stock rate it "hold" on avg - data compiled by LSEG
** Stock narrows losses to 7.1% from ~12% , when bank disclosed accounting lapses
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Shares of IndusInd Bank Ltd INBK.NS jump 5.7% to 840.20 rupees
** Private lender on Thursday appointed Santosh Kumar as its deputy CFO after deputy CEO Arun Khurana's term as finance chief ended
** Reserve Bank of India had urged Khurana to step down following the accounting lapses, Reuters reported
** INBK at its highest since March 10, when bank first reported discrepancies in its accounts relating to derivative deals that led to a net worth hit
** INBK top gainer on Nifty 50 .NSEI which is up 0.9%
** Analysts tracking stock rate it "hold" on avg - data compiled by LSEG
** Stock narrows losses to 7.1% from ~12% , when bank disclosed accounting lapses
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
IndusInd Bank Appoints Santosh Kumar As Deputy CFO
April 17 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK LTD - SANTOSH KUMAR APPOINTED DEPUTY CFO EFFECTIVE APRIL 18, 2025
INDUSIND BANK LTD - ARUN KHURANA RELIEVED FROM CFO RESPONSIBILITY EFFECTIVE APRIL 17, 2025
INDUSIND BANK LTD - ARUN KHURANA TOOK CHARGE AS CFO ON JAN 21, 2025
Source text: ID:nBSE2P9Nt0
Further company coverage: INBK.NS
(([email protected];;))
April 17 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK LTD - SANTOSH KUMAR APPOINTED DEPUTY CFO EFFECTIVE APRIL 18, 2025
INDUSIND BANK LTD - ARUN KHURANA RELIEVED FROM CFO RESPONSIBILITY EFFECTIVE APRIL 17, 2025
INDUSIND BANK LTD - ARUN KHURANA TOOK CHARGE AS CFO ON JAN 21, 2025
Source text: ID:nBSE2P9Nt0
Further company coverage: INBK.NS
(([email protected];;))
India's IndusInd Bank jump over 4% on smaller-than-expected hit to net worth
** Shares of private sector lender IndusInd Bank INBK.NS jump 4.2% to 767 rupees
** Stock among top gainers on benchmark Nifty 50 .NSEI which is little changed
** Co says it estimates hit to its net worth at 2.27%, lower than earlier assessment of a 2.35% hit
** Co says an external agency's report confirmed the bank's earlier finding of discrepancies in its accounts relating to derivative deals
** Stock jumped 6.7% on Tuesday, extending gains over last two days to 11%, set for their biggest two-day jump since February 2022
** Macquarie retains "outperform" rating, says the findings are "incrementally positive in the near term as impact of discrepancies will be limited to what was ascertained earlier"
** While 37 analysts tracking stock rate it "buy" on avg, INBK has most "hold" ratings in at least two years - data compiled by LSEG
** Stock trims losses since flagging net worth hit last month to about 15%
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Shares of private sector lender IndusInd Bank INBK.NS jump 4.2% to 767 rupees
** Stock among top gainers on benchmark Nifty 50 .NSEI which is little changed
** Co says it estimates hit to its net worth at 2.27%, lower than earlier assessment of a 2.35% hit
** Co says an external agency's report confirmed the bank's earlier finding of discrepancies in its accounts relating to derivative deals
** Stock jumped 6.7% on Tuesday, extending gains over last two days to 11%, set for their biggest two-day jump since February 2022
** Macquarie retains "outperform" rating, says the findings are "incrementally positive in the near term as impact of discrepancies will be limited to what was ascertained earlier"
** While 37 analysts tracking stock rate it "buy" on avg, INBK has most "hold" ratings in at least two years - data compiled by LSEG
** Stock trims losses since flagging net worth hit last month to about 15%
(Reporting by Nandan Mandayam in Bengaluru)
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IndusInd Bank flags 2.27% net worth hit from accounting lapse post external probe
Recasts, updates with details throughout
April 15 (Reuters) - India's IndusInd Bank INBK.NS said on Tuesday it estimates a 2.27% hit to its net worth as of December-end after an external agency found discrepancies in its accounts relating to derivative deals.
The bank reported last month it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years, with an estimated impact of $175 million.
It had also appointed an external agency to independently review and validate the internal findings.
In its report, the external agency has quantified the discrepancies at 19.79 billion rupees ($230.92 million) as of June 30.
Based on this, the bank reassessed its earlier estimated hit of 2.35% as of December-end on a post-tax basis, IndusInd said in a stock exchange filing.
IndusInd said it will appropriately reflect the resultant impact in the financial statements for 2024-25 and take "suitable steps to augment the internal controls relating to the derivative accounting operations."
Despite the accounting lapse, the bank expects to report a profit for the fourth quarter and fiscal 2025, its CEO told news channel CNBC-TV18 in March.
However, the Reserve Bank of India, the country's central bank, has asked IndusInd's CEO and his deputy to step down as soon as replacements are found and approved by it, Reuters reported last month, citing sources.
IndusInd has denied any such push from the RBI.
The discrepancies in derivative trades have also led the bank to appoint Grant Thornton to conduct a forensic review, the report of which is currently awaited.
IndusInd, which is India's fifth-largest private lender with a 5.4-trillion rupee balance sheet, has been grappling with elevated bad loans in the microfinance segment, leading to a drop in profit in the last two quarters.
IndusInd's shares have fallen 18.3% since March 10, when the lender first disclosed the impact on its net worth from the discrepancies.
($1 = 85.7000 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru and Siddhi Nayak in Mumbai; Editing by Shreya Biswas)
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Recasts, updates with details throughout
April 15 (Reuters) - India's IndusInd Bank INBK.NS said on Tuesday it estimates a 2.27% hit to its net worth as of December-end after an external agency found discrepancies in its accounts relating to derivative deals.
The bank reported last month it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years, with an estimated impact of $175 million.
It had also appointed an external agency to independently review and validate the internal findings.
In its report, the external agency has quantified the discrepancies at 19.79 billion rupees ($230.92 million) as of June 30.
Based on this, the bank reassessed its earlier estimated hit of 2.35% as of December-end on a post-tax basis, IndusInd said in a stock exchange filing.
IndusInd said it will appropriately reflect the resultant impact in the financial statements for 2024-25 and take "suitable steps to augment the internal controls relating to the derivative accounting operations."
Despite the accounting lapse, the bank expects to report a profit for the fourth quarter and fiscal 2025, its CEO told news channel CNBC-TV18 in March.
However, the Reserve Bank of India, the country's central bank, has asked IndusInd's CEO and his deputy to step down as soon as replacements are found and approved by it, Reuters reported last month, citing sources.
IndusInd has denied any such push from the RBI.
The discrepancies in derivative trades have also led the bank to appoint Grant Thornton to conduct a forensic review, the report of which is currently awaited.
IndusInd, which is India's fifth-largest private lender with a 5.4-trillion rupee balance sheet, has been grappling with elevated bad loans in the microfinance segment, leading to a drop in profit in the last two quarters.
IndusInd's shares have fallen 18.3% since March 10, when the lender first disclosed the impact on its net worth from the discrepancies.
($1 = 85.7000 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru and Siddhi Nayak in Mumbai; Editing by Shreya Biswas)
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India's IndusInd Bank posts flat quarterly deposit growth amid accounting lapse
April 4 (Reuters) - IndusInd Bank's INBK.NS fourth-quarter loan growth dropped 5.2% and its deposit expansion remained flat from three months ago, the Indian private lender said on Friday, weeks after disclosing an accounting lapse in its derivatives portfolio.
The discrepancy at the country's fifth-largest private sector bank resulted in a $175 million hole in its balance sheet, raised concerns over governance and led it to appoint Grant Thornton to conduct a forensic review.
On an annual basis, the lender's loans grew a modest 1.4%, while deposits rose 6.8%. The bank's shares are down nearly 25% since the lender disclosed the lapse.
The lender in March garnered $2 billion in higher-cost bulk deposits, its biggest monthly haul in at least two years, to shore up its funding base.
Its CASA ratio – the share of low-cost current and savings account deposits and a measure of operational efficiency – slipped to 32.8% from 34.9% in the prior quarter and 37.9% a year ago.
Its liquidity coverage ratio, or the portion of highly liquid assets held to ensure ability to meet their short-term obligations, stood at 118.4% for the fourth quarter.
IndusInd has also been grappling with elevated bad loans in the microfinance segment, leading to a drop in profit in the last two quarters.
Despite the accounting lapse, the bank expects to report a profit for the fourth quarter and the financial year 2025, its CEO told CNBC-TV18 in March.
(Reporting by Nishit Navin and Siddhi Nayak; Editing by Arun Koyyur)
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April 4 (Reuters) - IndusInd Bank's INBK.NS fourth-quarter loan growth dropped 5.2% and its deposit expansion remained flat from three months ago, the Indian private lender said on Friday, weeks after disclosing an accounting lapse in its derivatives portfolio.
The discrepancy at the country's fifth-largest private sector bank resulted in a $175 million hole in its balance sheet, raised concerns over governance and led it to appoint Grant Thornton to conduct a forensic review.
On an annual basis, the lender's loans grew a modest 1.4%, while deposits rose 6.8%. The bank's shares are down nearly 25% since the lender disclosed the lapse.
The lender in March garnered $2 billion in higher-cost bulk deposits, its biggest monthly haul in at least two years, to shore up its funding base.
Its CASA ratio – the share of low-cost current and savings account deposits and a measure of operational efficiency – slipped to 32.8% from 34.9% in the prior quarter and 37.9% a year ago.
Its liquidity coverage ratio, or the portion of highly liquid assets held to ensure ability to meet their short-term obligations, stood at 118.4% for the fourth quarter.
IndusInd has also been grappling with elevated bad loans in the microfinance segment, leading to a drop in profit in the last two quarters.
Despite the accounting lapse, the bank expects to report a profit for the fourth quarter and the financial year 2025, its CEO told CNBC-TV18 in March.
(Reporting by Nishit Navin and Siddhi Nayak; Editing by Arun Koyyur)
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India's markets regulator probes insider trading at IndusInd Bank, ET reports
March 27 (Reuters) - India's market regulator is investigating possible insider trading among senior officials of IndusInd Bank INBK.NS amid significant accounting lapses by the lender, the Economic Times reported on Thursday.
The Mumbai-based lender reported earlier this month that it had discovered accounting discrepancies in the way it booked currency derivatives, going back at least six years, with an estimated impact of about $175 million.
The Securities and Exchange Board of India (SEBI) has sought information about trades executed by five senior officials while they were in possession of unpublished price-sensitive information of IndusInd, the newspaper said, citing two people close to the development.
SEBI is also examining whether IndusInd violated its disclosure norms, the report said.
The lender did not immediately respond to a Reuters' request for comment.
It has appointed an independent firm to conduct an investigation into the lapses and the discrepancies, which have also led to concerns over governance at the bank. Reuters reported earlier this week that IndusInd had appointed Grant Thornton to conduct the review.
Shares of IndusInd have fallen over 27% since it first announced the lapses on March 10.
(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
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March 27 (Reuters) - India's market regulator is investigating possible insider trading among senior officials of IndusInd Bank INBK.NS amid significant accounting lapses by the lender, the Economic Times reported on Thursday.
The Mumbai-based lender reported earlier this month that it had discovered accounting discrepancies in the way it booked currency derivatives, going back at least six years, with an estimated impact of about $175 million.
The Securities and Exchange Board of India (SEBI) has sought information about trades executed by five senior officials while they were in possession of unpublished price-sensitive information of IndusInd, the newspaper said, citing two people close to the development.
SEBI is also examining whether IndusInd violated its disclosure norms, the report said.
The lender did not immediately respond to a Reuters' request for comment.
It has appointed an independent firm to conduct an investigation into the lapses and the discrepancies, which have also led to concerns over governance at the bank. Reuters reported earlier this week that IndusInd had appointed Grant Thornton to conduct the review.
Shares of IndusInd have fallen over 27% since it first announced the lapses on March 10.
(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
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IndusInd Bank, stung by accounting lapses, raised $2 billion via market deposits in March
IndusInd sees surge in deposits raised via market instruments
Market-based deposits more expensive than retail
Bank disclosed accounting discrepancies in March
Bank may be looking to shore up deposits and liquidity, says analyst
By Siddhi Nayak and Dharamraj Dhutia
MUMBAI, March 26 (Reuters) - India's IndusInd Bank INBK.NS garnered $2 billion in higher-cost bulk deposits in March, its biggest monthly haul in at least two years, as the lender shored up its funding base after disclosing accounting lapses.
The country's fifth-largest private sector bank flagged earlier in the month a $175 million hole in its balance sheet, citing accounting discrepancies in its derivatives portfolio.
The discrepancies have led to concerns over governance at the bank and the appointment of Grant Thornton to conduct a forensic review into the accounting lapses. The bank's shares are down nearly 27% since the lender disclosed the matter.
Publicly available data from India's clearing house showed that IndusInd Bank raised 165.50 billion rupees ($1.93 billion) in March through the sale of certificates of deposits (CDs) maturing in three months to one year, with about 85% of that raised after the lapses were disclosed.
It paid 7.90% on its one-year CDs this month, 20 basis points higher than what it had paid for similar deposits in February, the data showed.
"By issuing CDs, the bank may want to shore up its overall deposit base and maintain higher liquidity to counter uncertainty on deposit withdrawals," Karthik Srinivasan, senior vice president & group head at rating agency ICRA, said.
"It is also a confidence building exercise to ensure that the bank's liquidity remains strong."
An IndusInd spokesperson said the bank "evaluates various sources of funds depending on its asset and liability requirements" and that it has a "healthy liquidity position" with a focus on retail deposit mobilisation.
The Reserve Bank of India (RBI), the country's central bank, said this month IndusInd Bank was well capitalised and its financial position remained "satisfactory".
LESS PREFERRED OPTION
For lenders in India, bulk deposits - those that are more than 30 million rupees - are generally less preferable to retail deposits as they cost around 20-150 basis points more.
But IndusInd Bank raised through bulk deposits in March nearly 3.5 times what it raised in the preceding month, marking its highest haul since at least April 2023, the clearing house data showed.
The on-month jump in such deposits raised by IndusInd Bank is also way above the 40% average increase for the banking industry.
RBI asked some state-run and private-sector banks to subscribe to IndusInd Bank's bulk deposit CDs, two sources from banks that have subscribed to these instruments said.
The central bank did not immediately reply to a Reuters email seeking comment.
The sources requested anonymity as they are not authorised to speak to media.
IndusInd Bank had an overall deposit base of 4.09 trillion rupees as of December 2024 of which retail deposits accounted for 46%, according to its latest available data.
($1 = 85.7500 Indian rupees)
IndusInd Bank's reliance on funding via CDs jumps in March https://reut.rs/4hKXDMt
(Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Muralikumar Anantharaman)
(([email protected];))
IndusInd sees surge in deposits raised via market instruments
Market-based deposits more expensive than retail
Bank disclosed accounting discrepancies in March
Bank may be looking to shore up deposits and liquidity, says analyst
By Siddhi Nayak and Dharamraj Dhutia
MUMBAI, March 26 (Reuters) - India's IndusInd Bank INBK.NS garnered $2 billion in higher-cost bulk deposits in March, its biggest monthly haul in at least two years, as the lender shored up its funding base after disclosing accounting lapses.
The country's fifth-largest private sector bank flagged earlier in the month a $175 million hole in its balance sheet, citing accounting discrepancies in its derivatives portfolio.
The discrepancies have led to concerns over governance at the bank and the appointment of Grant Thornton to conduct a forensic review into the accounting lapses. The bank's shares are down nearly 27% since the lender disclosed the matter.
Publicly available data from India's clearing house showed that IndusInd Bank raised 165.50 billion rupees ($1.93 billion) in March through the sale of certificates of deposits (CDs) maturing in three months to one year, with about 85% of that raised after the lapses were disclosed.
It paid 7.90% on its one-year CDs this month, 20 basis points higher than what it had paid for similar deposits in February, the data showed.
"By issuing CDs, the bank may want to shore up its overall deposit base and maintain higher liquidity to counter uncertainty on deposit withdrawals," Karthik Srinivasan, senior vice president & group head at rating agency ICRA, said.
"It is also a confidence building exercise to ensure that the bank's liquidity remains strong."
An IndusInd spokesperson said the bank "evaluates various sources of funds depending on its asset and liability requirements" and that it has a "healthy liquidity position" with a focus on retail deposit mobilisation.
The Reserve Bank of India (RBI), the country's central bank, said this month IndusInd Bank was well capitalised and its financial position remained "satisfactory".
LESS PREFERRED OPTION
For lenders in India, bulk deposits - those that are more than 30 million rupees - are generally less preferable to retail deposits as they cost around 20-150 basis points more.
But IndusInd Bank raised through bulk deposits in March nearly 3.5 times what it raised in the preceding month, marking its highest haul since at least April 2023, the clearing house data showed.
The on-month jump in such deposits raised by IndusInd Bank is also way above the 40% average increase for the banking industry.
RBI asked some state-run and private-sector banks to subscribe to IndusInd Bank's bulk deposit CDs, two sources from banks that have subscribed to these instruments said.
The central bank did not immediately reply to a Reuters email seeking comment.
The sources requested anonymity as they are not authorised to speak to media.
IndusInd Bank had an overall deposit base of 4.09 trillion rupees as of December 2024 of which retail deposits accounted for 46%, according to its latest available data.
($1 = 85.7500 Indian rupees)
IndusInd Bank's reliance on funding via CDs jumps in March https://reut.rs/4hKXDMt
(Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Muralikumar Anantharaman)
(([email protected];))
India's IndusInd Bank continues slide, down 29% since accounting lapses disclosure
** India's IndusInd Bank INBK.NS slips 4% to 642.25 rupees, continues to underperform bank stocks, following discrepancy in derivatives portfolio
** Stock down 6.5% in two sessions and nearly 29% since March 10 when bank disclosed the issue
** Lender appoints Grant Thornton to conduct a forensic review into accounting lapses and to check if there is any evidence of fraud or internal misstatements, sources tell Reuters
** Overhang about potential leadership changes following the discrepancy also weighing on stock
** Analysts avg rating on stock "hold" vs "buy", as of Feb. 25, while median PT down to 1,000 rupees from 1,280 earlier, shows LSEG data
** Several brokerage downgrade stock, citing weak internal controls; Jefferies sees potential for stock derating
** INBK down 33% YTD, while bank .NSEBANK index up 2.4%
(Reporting by Vivek Kumar M)
(([email protected];))
** India's IndusInd Bank INBK.NS slips 4% to 642.25 rupees, continues to underperform bank stocks, following discrepancy in derivatives portfolio
** Stock down 6.5% in two sessions and nearly 29% since March 10 when bank disclosed the issue
** Lender appoints Grant Thornton to conduct a forensic review into accounting lapses and to check if there is any evidence of fraud or internal misstatements, sources tell Reuters
** Overhang about potential leadership changes following the discrepancy also weighing on stock
** Analysts avg rating on stock "hold" vs "buy", as of Feb. 25, while median PT down to 1,000 rupees from 1,280 earlier, shows LSEG data
** Several brokerage downgrade stock, citing weak internal controls; Jefferies sees potential for stock derating
** INBK down 33% YTD, while bank .NSEBANK index up 2.4%
(Reporting by Vivek Kumar M)
(([email protected];))
India's IndusInd taps Grant Thornton for fraud checks in accounting case, sources say
Repeats story from Sunday with no changes to text
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.
IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.
The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.
IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.
The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.
The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.
The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.
IndusInd and Grant Thornton did not respond to Reuters' requests for comment.
Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."
(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)
((Email: [email protected]; X: @adityakalra;))
Repeats story from Sunday with no changes to text
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.
IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.
The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.
IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.
The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.
The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.
The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.
IndusInd and Grant Thornton did not respond to Reuters' requests for comment.
Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."
(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)
((Email: [email protected]; X: @adityakalra;))
India's IndusInd taps Grant Thornton for fraud checks in accounting case, sources say
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.
IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.
The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.
IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.
The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.
The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.
The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.
IndusInd and Grant Thornton did not respond to Reuters' requests for comment.
Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."
(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)
((Email: [email protected]; X: @adityakalra;))
By Aditya Kalra and Siddhi Nayak
NEW DELHI/MUMBAI, March 23 (Reuters) - India's IndusInd Bank INBK.NS has appointed Grant Thornton to conduct a forensic review into accounting lapses detected this month and to check if there is any evidence of fraud or internal misstatements, said two people with direct knowledge of the matter.
IndusInd is India's fifth-largest private lender with a balance sheet of $63 billion. Its shares have lost about 23.4% since it disclosed on March 10 that its derivatives portfolio was overvalued by around 2.35%, or $175 million, after non-compliant internal trades.
The accounting discrepancy contravened Reserve Bank of India rules, though the central bank has said IndusInd is well-capitalised.
IndusInd on Thursday told stock exchanges it had appointed an unnamed firm to identify the root cause of the problem and identify lapses, but it did not say that would include checks related to any potential fraudulent transactions.
The two sources said on Sunday that Grant Thornton was the firm appointed and its extensive forensic review would include assessment of any evidence that indicates fraud in the transactions. They declined to be named as the matter is confidential.
The first source added Grant Thornton would also assign accountability to individuals who were responsible for the lapses, and review the accounting treatment of all derivative contracts.
The source added Grant Thornton would also assess if there were any intentional misstatements internally related to the transactions.
IndusInd and Grant Thornton did not respond to Reuters' requests for comment.
Reuters reported last week that the Reserve Bank of India had urged the CEO of IndusInd Bank and his deputy to step down as soon as replacements were found due to the significant accounting lapses. IndusInd Bank, however, strongly denied the claims, stating they were "factually incorrect."
(Reporting by Aditya Kalra and Siddhi Nayak; Editing by Jamie Freed)
((Email: [email protected]; X: @adityakalra;))
IndusInd Bank chiefs to exit within months after accounting lapses, sources say
By Siddhi Nayak and Ira Dugal
MUMBAI, March 21 (Reuters) - The Reserve Bank of India has urged the CEO of IndusInd Bank and his deputy to step down after significant accounting lapses as soon as replacements are found and the central bank has approved them, according to four sources familiar with the conversations.
IndusInd INBK.NS is India's fifth largest private lender, with a 5.4 trillion rupee ($63 billion) balance sheet. On March 10 it disclosed that its derivatives portfolio was overvalued by around 2.35% - about $175 million - after non-compliant internal trades.
The bank, headed by Sumant Kathpalia, has appointed external investigators. His deputy, Arun Khurana, also heads the global markets division, which includes the derivatives portfolio.
The RBI made clear that it had lost confidence in the top executives, but that it wanted an orderly transition to avoid unnerving depositors, said one of the sources, briefed by top management.
A second source said the RBI, which only recently approved a one-year extension for Kathpalia, had also made clear that it wanted the candidates to come from outside IndusInd.
While a bank's board makes recommendations for top executive positions, RBI approval is required. The central bank is known to offer informal advice to lenders facing governance or financial concerns that it would prefer an external candidate.
After the discrepancies were disclosed, the RBI issued a statement assuring depositors that the bank was well capitalised.
Emails sent to the RBI, IndusInd Bank, Kathpalia and Khurana were not answered.
The sources said the accounting discrepancy - which contravened RBI rules introduced only in April 2024 - did not appear to be an industry-wide problem.
The first source said it was a clear issue of lack of oversight, and another source said it had come to light in September 2024 when it was flagged to Kathpalia.
Moody's Ratings on March 17 put the bank's rating on review for possible downgrade.
"The discrepancy in the accounting shows weakness in the bank's risk management, compliance and reporting and persistent weaknesses in these areas could weaken IndusInd's reputation, and hence its funding and liquidity," it said.
IndusInd Bank shares have tumbled over 30% this month.
($1 = 86.0350 Indian rupees)
(Reporting by Siddhi Nayak and Ira Dugal; additional reporting by Swati Bhat; Editing by Kevin Liffey)
(([email protected]; +91-9833024892;))
By Siddhi Nayak and Ira Dugal
MUMBAI, March 21 (Reuters) - The Reserve Bank of India has urged the CEO of IndusInd Bank and his deputy to step down after significant accounting lapses as soon as replacements are found and the central bank has approved them, according to four sources familiar with the conversations.
IndusInd INBK.NS is India's fifth largest private lender, with a 5.4 trillion rupee ($63 billion) balance sheet. On March 10 it disclosed that its derivatives portfolio was overvalued by around 2.35% - about $175 million - after non-compliant internal trades.
The bank, headed by Sumant Kathpalia, has appointed external investigators. His deputy, Arun Khurana, also heads the global markets division, which includes the derivatives portfolio.
The RBI made clear that it had lost confidence in the top executives, but that it wanted an orderly transition to avoid unnerving depositors, said one of the sources, briefed by top management.
A second source said the RBI, which only recently approved a one-year extension for Kathpalia, had also made clear that it wanted the candidates to come from outside IndusInd.
While a bank's board makes recommendations for top executive positions, RBI approval is required. The central bank is known to offer informal advice to lenders facing governance or financial concerns that it would prefer an external candidate.
After the discrepancies were disclosed, the RBI issued a statement assuring depositors that the bank was well capitalised.
Emails sent to the RBI, IndusInd Bank, Kathpalia and Khurana were not answered.
The sources said the accounting discrepancy - which contravened RBI rules introduced only in April 2024 - did not appear to be an industry-wide problem.
The first source said it was a clear issue of lack of oversight, and another source said it had come to light in September 2024 when it was flagged to Kathpalia.
Moody's Ratings on March 17 put the bank's rating on review for possible downgrade.
"The discrepancy in the accounting shows weakness in the bank's risk management, compliance and reporting and persistent weaknesses in these areas could weaken IndusInd's reputation, and hence its funding and liquidity," it said.
IndusInd Bank shares have tumbled over 30% this month.
($1 = 86.0350 Indian rupees)
(Reporting by Siddhi Nayak and Ira Dugal; additional reporting by Swati Bhat; Editing by Kevin Liffey)
(([email protected]; +91-9833024892;))
IndusInd Bank appoints independent firm to probe accounting discrepancies
Adds background, details from statement paragraph 3 onwards
March 20 (Reuters) - IndusInd Bank INBK.NS said on Thursday it has appointed an independent firm to conduct an investigation into discrepancies found by the bank related to its derivatives portfolio.
The Mumbai-based lender reported earlier this month that it had discovered an accounting discrepancy in the way it booked currency derivatives, stretching back at least six years, with an estimated impact of $175 million.
The independent firm, which the bank did not name, will identify the root cause of the discrepancies, assess the correctness of the accounting treatment of the derivative contracts with regard to current accounting standards, and identify lapses, IndusInd said in an exchange filing.
Shares of IndusInd Bank were down about 30% this month, hit by worries over the issue and after the central bank approved a shorter-than-requested term extension for CEO Sumant Kathpalia, who has been with IndusInd Bank for 17 years.
India's central bank said on Saturday that IndusInd Bank was well capitalised and the financial position of the bank remained "satisfactory".
(Reporting by Chris Thomas in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)
Adds background, details from statement paragraph 3 onwards
March 20 (Reuters) - IndusInd Bank INBK.NS said on Thursday it has appointed an independent firm to conduct an investigation into discrepancies found by the bank related to its derivatives portfolio.
The Mumbai-based lender reported earlier this month that it had discovered an accounting discrepancy in the way it booked currency derivatives, stretching back at least six years, with an estimated impact of $175 million.
The independent firm, which the bank did not name, will identify the root cause of the discrepancies, assess the correctness of the accounting treatment of the derivative contracts with regard to current accounting standards, and identify lapses, IndusInd said in an exchange filing.
Shares of IndusInd Bank were down about 30% this month, hit by worries over the issue and after the central bank approved a shorter-than-requested term extension for CEO Sumant Kathpalia, who has been with IndusInd Bank for 17 years.
India's central bank said on Saturday that IndusInd Bank was well capitalised and the financial position of the bank remained "satisfactory".
(Reporting by Chris Thomas in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)
Investors wary of IndusInd Bank due to credibility, deposit risks, says Bernstein
** India's IndusInd Bank INBK.NS has plunged 25% in five sessions since it estimated a net worth hit due to hedging-related accounting issues
** Bernstein says while stock's valuations are cheap, well below long-term averages, investors are still worried about risks
** Reiterates "outperform", but cuts TP to 1,000 rupees from 1,300 rupees, and vs Tues close of 677.40 rupees
** Says major risk is management credibility due to sharp drop in CEO, deputy CEO's stock ownership from June 2023 to June 2024
** Adds reliance on wholesale deposits puts INBK at risk of sharp deposit outflows on fears of deeper accounting issues
** Cuts loan growth estimates for FY26-27, resulting in a 10% fall in EPS hit
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** India's IndusInd Bank INBK.NS has plunged 25% in five sessions since it estimated a net worth hit due to hedging-related accounting issues
** Bernstein says while stock's valuations are cheap, well below long-term averages, investors are still worried about risks
** Reiterates "outperform", but cuts TP to 1,000 rupees from 1,300 rupees, and vs Tues close of 677.40 rupees
** Says major risk is management credibility due to sharp drop in CEO, deputy CEO's stock ownership from June 2023 to June 2024
** Adds reliance on wholesale deposits puts INBK at risk of sharp deposit outflows on fears of deeper accounting issues
** Cuts loan growth estimates for FY26-27, resulting in a 10% fall in EPS hit
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
Moody's places IndusInd Bank's credit assessment on review for downgrade
March 17 (Reuters) - Moody's Ratings said on Monday it has placed IndusInd Bank's INBK.NS baseline credit assessment (BCA) under review for downgrade due to concerns over "inadequate internal controls" after the lender found discrepancies in its derivative accounts.
"The impact of the derivatives transactions, coupled with the ongoing stress in the retail unsecured loans, is likely to hurt the bank's profitability, capital and funding, potentially leading to a downgrade of the BCA," Moody's said.
Baseline credit assessments are based on the company's own financial health, without considering any help it might get from related companies or the government.
The Mumbai-based lender earlier this month reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years, with an estimated impact of $175 million.
"Beyond the accounting issue, IndusInd's potential leadership changes also remains a monitorable," Moody's added.
The accounting issue has further compounded worries for the bank's stock which was already under pressure after the central bank last week approved a shorter-than-requested extension for CEO Sumant Kathpalia.
Shares of IndusInd Bank are down roughly 28% since the central bank's decision.
Moody's maintained its 'Ba1' rating on IndusInd Bank with stable outlook, citing the bank's strong capital, core profitability and stable funding, but said an upgrade of ratings was unlikely in the near term given the review for a downgrade of the BCA.
(Reporting by Ashish Chandra in Bengaluru; Editing by Tasim Zahid)
(([email protected]; +91 7982114624;))
March 17 (Reuters) - Moody's Ratings said on Monday it has placed IndusInd Bank's INBK.NS baseline credit assessment (BCA) under review for downgrade due to concerns over "inadequate internal controls" after the lender found discrepancies in its derivative accounts.
"The impact of the derivatives transactions, coupled with the ongoing stress in the retail unsecured loans, is likely to hurt the bank's profitability, capital and funding, potentially leading to a downgrade of the BCA," Moody's said.
Baseline credit assessments are based on the company's own financial health, without considering any help it might get from related companies or the government.
The Mumbai-based lender earlier this month reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years, with an estimated impact of $175 million.
"Beyond the accounting issue, IndusInd's potential leadership changes also remains a monitorable," Moody's added.
The accounting issue has further compounded worries for the bank's stock which was already under pressure after the central bank last week approved a shorter-than-requested extension for CEO Sumant Kathpalia.
Shares of IndusInd Bank are down roughly 28% since the central bank's decision.
Moody's maintained its 'Ba1' rating on IndusInd Bank with stable outlook, citing the bank's strong capital, core profitability and stable funding, but said an upgrade of ratings was unlikely in the near term given the review for a downgrade of the BCA.
(Reporting by Ashish Chandra in Bengaluru; Editing by Tasim Zahid)
(([email protected]; +91 7982114624;))
Indian central bank says IndusInd Bank's financial health remains stable
NEW DELHI, March 15 (Reuters) - India's central bank said on Saturday that private lender IndusInd Bank INBK.NS is well-capitalised and the financial position of the bank remains satisfactory.
Earlier this month, IndusInd Bank reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years.
The resulting estimated $175 million impact roughly equates to an entire quarter's earnings.
The bank backed by the Hinduja Group has had a turbulent few months.
"As such, there is no need for depositors to react to the speculative reports at this juncture," an official at the Reserve Bank of India said in a statement about IndusInd.
"The bank's financial health remains stable and is being monitored closely by Reserve Bank."
The private lender has engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact.
(Reporting by Rupam Jain; Editing by Jacqueline Wong)
(([email protected]; +91 7042133028;))
NEW DELHI, March 15 (Reuters) - India's central bank said on Saturday that private lender IndusInd Bank INBK.NS is well-capitalised and the financial position of the bank remains satisfactory.
Earlier this month, IndusInd Bank reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years.
The resulting estimated $175 million impact roughly equates to an entire quarter's earnings.
The bank backed by the Hinduja Group has had a turbulent few months.
"As such, there is no need for depositors to react to the speculative reports at this juncture," an official at the Reserve Bank of India said in a statement about IndusInd.
"The bank's financial health remains stable and is being monitored closely by Reserve Bank."
The private lender has engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact.
(Reporting by Rupam Jain; Editing by Jacqueline Wong)
(([email protected]; +91 7042133028;))
CLSA sees 31% upside for IndusInd Bank after recent tumble
** Shares of IndusInd Bank INBK.NS down 0.5% at 681 rupees
** INBK shares down 27.5% this week on net worth hit due to discrepancies in derivative accounts and a smaller one-year extension to CEO; on course for worst week in five years
** Despite the drop, CLSA stock sees 31% upside in the next 12 months for the private lender
** While CLSA cut its price target to 900 rupees from 1,300 rupees, it maintained its "outperform" rating flagging possibility of some near-term positives
** Two fundamental positives in near term could be recovery in microfinance book and respite for margins on better liquidity and rate cuts - CLSA
** CLSA likens the one-year extension given to INBK's CEO earlier in the week to similar extension given to RBL Bank's RATB.NS MD four years ago
** INBK may also recover like RATB's shares did, if it meets the Street expectations on earnings in the next four-six quarters, says CLSA
** INBK stock down 29% YTD vs 5.5% drop in Nifty Bank index.NSEBANK
(Reporting by Nishit Navin)
(([email protected];))
** Shares of IndusInd Bank INBK.NS down 0.5% at 681 rupees
** INBK shares down 27.5% this week on net worth hit due to discrepancies in derivative accounts and a smaller one-year extension to CEO; on course for worst week in five years
** Despite the drop, CLSA stock sees 31% upside in the next 12 months for the private lender
** While CLSA cut its price target to 900 rupees from 1,300 rupees, it maintained its "outperform" rating flagging possibility of some near-term positives
** Two fundamental positives in near term could be recovery in microfinance book and respite for margins on better liquidity and rate cuts - CLSA
** CLSA likens the one-year extension given to INBK's CEO earlier in the week to similar extension given to RBL Bank's RATB.NS MD four years ago
** INBK may also recover like RATB's shares did, if it meets the Street expectations on earnings in the next four-six quarters, says CLSA
** INBK stock down 29% YTD vs 5.5% drop in Nifty Bank index.NSEBANK
(Reporting by Nishit Navin)
(([email protected];))
India central bank probing banks' derivatives books amid IndusInd fallout, sources say
By Siddhi Nayak
MUMBAI, March 12 (Reuters) - India's central bank is examining derivatives exposures of some private and state-run banks days after IndusInd Bank INBK.NS disclosed lapses in its derivatives accounting, three sources said on Wednesday.
The Reserve Bank of India has asked lenders for details of their overseas borrowings and deposits as well as their forex hedge positions, the sources said.
On Monday, private lender IndusInd Bank flagged a 2.35% hit to its net worth due to an underestimation of hedging costs related to forex transactions.
"The RBI wants to confirm from banks whether the hedge effectiveness is perfect and if IndusInd's issue is part of a bigger problem," one of the sources said.
The sources did not wish to be identified as they are not allowed to speak to the media.
The RBI did not immediately reply to a Reuters email seeking comment.
Before new investment norms for banks kicked in from April 1, 2024, banks' asset liability management and treasury desks were permitted to enter into internal swaps, where one cash flow is exchanged for another.
An early termination of such deals led to the profit being accounted for while the loss was not, IndusInd Bank's CEO Sumant Kathpalia said on Tuesday.
Now, the RBI wants "to ascertain that banks with heavy foreign liabilities are not exposed to a situation wherein any losses from internal hedges done previously have not been accounted for", the second source said.
If any discrepancies are found, the central bank may nudge lenders to go for an external audit, this person said.
Currently, "there is no reason to believe" that there is a systemwide issue, a separate source aware of the central bank's thinking, said.
The RBI typically asks banks for data during routine audits, but the fact that it is being sought now "clearly indicates that the regulator does not want to be caught napping, in case it blows up into a systemic issue", this person said.
(Reporting by Siddhi Nayak, additional reporting by Swati Bhat; Editing by Mrigank Dhaniwala)
(([email protected]; x.com/siddhiVnayak;))
By Siddhi Nayak
MUMBAI, March 12 (Reuters) - India's central bank is examining derivatives exposures of some private and state-run banks days after IndusInd Bank INBK.NS disclosed lapses in its derivatives accounting, three sources said on Wednesday.
The Reserve Bank of India has asked lenders for details of their overseas borrowings and deposits as well as their forex hedge positions, the sources said.
On Monday, private lender IndusInd Bank flagged a 2.35% hit to its net worth due to an underestimation of hedging costs related to forex transactions.
"The RBI wants to confirm from banks whether the hedge effectiveness is perfect and if IndusInd's issue is part of a bigger problem," one of the sources said.
The sources did not wish to be identified as they are not allowed to speak to the media.
The RBI did not immediately reply to a Reuters email seeking comment.
Before new investment norms for banks kicked in from April 1, 2024, banks' asset liability management and treasury desks were permitted to enter into internal swaps, where one cash flow is exchanged for another.
An early termination of such deals led to the profit being accounted for while the loss was not, IndusInd Bank's CEO Sumant Kathpalia said on Tuesday.
Now, the RBI wants "to ascertain that banks with heavy foreign liabilities are not exposed to a situation wherein any losses from internal hedges done previously have not been accounted for", the second source said.
If any discrepancies are found, the central bank may nudge lenders to go for an external audit, this person said.
Currently, "there is no reason to believe" that there is a systemwide issue, a separate source aware of the central bank's thinking, said.
The RBI typically asks banks for data during routine audits, but the fact that it is being sought now "clearly indicates that the regulator does not want to be caught napping, in case it blows up into a systemic issue", this person said.
(Reporting by Siddhi Nayak, additional reporting by Swati Bhat; Editing by Mrigank Dhaniwala)
(([email protected]; x.com/siddhiVnayak;))
India's IndusInd Bank set for steepest fall in 5 years on net-worth hit
Updates
** Shares of India's IndusInd Bank INBK.NS slip as much as 20%, set for their worst day since late March 2020
** INBK shares at 727.20 rupees, lowest since November 2020
** Private lender warns of 2.35% decline in net worth as of December 2024 due to discrepancies in derivative accounts
** Internal derivative trades, not in compliance with RBI's rules enforced from April 2024, impacted net worth
** Macquarie says issues like this raise questions on robustness of bank's internal process, compliance
** Adds this could be one of the reasons for sub-optimal CEO tenor extension
** UBS cuts PT to 770 rupees from 850 rupees; retains "sell"
** Jefferies says impact of discrepancy "clearly reflects weak internal controls"
** While stock's rating on avg remains "buy"; median PT is down to 1,190 rupees from 1,280 rupees last month, per data compiled by LSEG
** INBK's 42% slide in last 52 weeks is the biggest on benchmark Nifty 50 .NSEI index
(Reporting by Vijay Malkar and Nandan Mandayam)
(([email protected];))
Updates
** Shares of India's IndusInd Bank INBK.NS slip as much as 20%, set for their worst day since late March 2020
** INBK shares at 727.20 rupees, lowest since November 2020
** Private lender warns of 2.35% decline in net worth as of December 2024 due to discrepancies in derivative accounts
** Internal derivative trades, not in compliance with RBI's rules enforced from April 2024, impacted net worth
** Macquarie says issues like this raise questions on robustness of bank's internal process, compliance
** Adds this could be one of the reasons for sub-optimal CEO tenor extension
** UBS cuts PT to 770 rupees from 850 rupees; retains "sell"
** Jefferies says impact of discrepancy "clearly reflects weak internal controls"
** While stock's rating on avg remains "buy"; median PT is down to 1,190 rupees from 1,280 rupees last month, per data compiled by LSEG
** INBK's 42% slide in last 52 weeks is the biggest on benchmark Nifty 50 .NSEI index
(Reporting by Vijay Malkar and Nandan Mandayam)
(([email protected];))
Indusind Bank Says Detailed Internal Review Estimates 2.35% Adverse Impact On Net Worth
March 10 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK LTD - DETAILED INTERNAL REVIEW ESTIMATES 2.35% ADVERSE IMPACT ON NET WORTH
INDUSIND BANK LTD - APPOINTS EXTERNAL AGENCY TO REVIEW FINDINGS
INDUSIND BANK LTD - PROFITABILITY AND CAPITAL ADEQUACY REMAIN HEALTHY
INDUSIND BANK - FINAL REPORT OF EXTERNAL AGENCY IS AWAITED
Source text: ID:nBSE3NmFWN
Further company coverage: INBK.NS
(([email protected];))
March 10 (Reuters) - Indusind Bank Ltd INBK.NS:
INDUSIND BANK LTD - DETAILED INTERNAL REVIEW ESTIMATES 2.35% ADVERSE IMPACT ON NET WORTH
INDUSIND BANK LTD - APPOINTS EXTERNAL AGENCY TO REVIEW FINDINGS
INDUSIND BANK LTD - PROFITABILITY AND CAPITAL ADEQUACY REMAIN HEALTHY
INDUSIND BANK - FINAL REPORT OF EXTERNAL AGENCY IS AWAITED
Source text: ID:nBSE3NmFWN
Further company coverage: INBK.NS
(([email protected];))
India's IndusInd Bank CEO gets one-year extension, short of board's recommendation
Adds details, background paragraph 2 onwards
March 7 (Reuters) - Indian private lender IndusInd Bank INBK.NS said on Friday it had received approval from the country's central bank to reappoint Sumant Kathpalia as its chief executive officer and managing director for a period of one year.
The Reserve Bank of India (RBI) approved Kathpalia's term to be extended from March 24 this year to March 23, 2026, IndusInd said.
The private lender's board in September had approved Kathpalia's reappointment as CEO for a three-year term.
Typically, the RBI gives a three-year extension period for the reappointment of CEOs.
However, there have been instances where the RBI gave one-year extensions to bank CEOs, with the most notable cases being those of former Kotak Mahindra Bank KTKM.NS CEO Uday Kotak, former Federal Bank FED.NS CEO Shyam Srinivasan and former RBL Bank RATB.NS CEO Vishwavir Ahuja.
Kathpalia, with 37 years of experience as a career banker, has been with IndusInd Bank for 17 years. He has also worked with global banks, including Citibank, Bank of America and ABN AMRO.
IndusInd is currently dealing with increased stress from its microfinance segment, where the gross non-performing assets ratio is deteriorating, resulting in the lender missing its third-quarter profit estimates.
Microfinance forms 9% of the bank's total loans.
(Reporting by Kashish Tandon in Bengaluru and Siddhi Nayak in Mumbai; Editing by Shreya Biswas)
(([email protected]; 8800437922;))
Adds details, background paragraph 2 onwards
March 7 (Reuters) - Indian private lender IndusInd Bank INBK.NS said on Friday it had received approval from the country's central bank to reappoint Sumant Kathpalia as its chief executive officer and managing director for a period of one year.
The Reserve Bank of India (RBI) approved Kathpalia's term to be extended from March 24 this year to March 23, 2026, IndusInd said.
The private lender's board in September had approved Kathpalia's reappointment as CEO for a three-year term.
Typically, the RBI gives a three-year extension period for the reappointment of CEOs.
However, there have been instances where the RBI gave one-year extensions to bank CEOs, with the most notable cases being those of former Kotak Mahindra Bank KTKM.NS CEO Uday Kotak, former Federal Bank FED.NS CEO Shyam Srinivasan and former RBL Bank RATB.NS CEO Vishwavir Ahuja.
Kathpalia, with 37 years of experience as a career banker, has been with IndusInd Bank for 17 years. He has also worked with global banks, including Citibank, Bank of America and ABN AMRO.
IndusInd is currently dealing with increased stress from its microfinance segment, where the gross non-performing assets ratio is deteriorating, resulting in the lender missing its third-quarter profit estimates.
Microfinance forms 9% of the bank's total loans.
(Reporting by Kashish Tandon in Bengaluru and Siddhi Nayak in Mumbai; Editing by Shreya Biswas)
(([email protected]; 8800437922;))
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What does Indusind Bank do?
IndusInd Bank is a prominent universal bank in India, established in 1994. It offers a wide range of banking products and services to individuals, corporates, and government entities with a focus on sustainability.
Who are the competitors of Indusind Bank?
Indusind Bank major competitors are Yes Bank, AU Small Fin. Bank, Federal Bank, IDFC First Bank, Bandhan Bank, Karur Vysya Bank, City Union Bank. Market Cap of Indusind Bank is ₹63,458 Crs. While the median market cap of its peers are ₹49,467 Crs.
Is Indusind Bank financially stable compared to its competitors?
Indusind Bank seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does Indusind Bank pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. Indusind Bank latest dividend payout ratio is 14.31% and 3yr average dividend payout ratio is 14.2%
How has Indusind Bank allocated its funds?
Company has been allocating majority of new resources to productive uses like advances.
How strong is Indusind Bank balance sheet?
The companies balance sheet of Indusind Bank is weak, but was strong historically.
Is the profitablity of Indusind Bank improving?
The profit is oscillating. The profit of Indusind Bank is ₹2,575 Crs for TTM, ₹8,977 Crs for Mar 2024 and ₹7,443 Crs for Mar 2023.
Is Indusind Bank stock expensive?
Indusind Bank is expensive when considering the PE ratio, however latest Price to Book is < 3 yr avg Price to Book. Latest PE of Indusind Bank is 24.64 while 3 year average PE is 16.27. Also latest Price to Book of Indusind Bank is 0.98 while 3yr average is 1.68.
Has the share price of Indusind Bank grown faster than its competition?
Indusind Bank has given lower returns compared to its competitors. Indusind Bank has grown at ~-11.53% over the last 7yrs while peers have grown at a median rate of 7.38%
Is the promoter bullish about Indusind Bank?
Promoters seem not to be bullish about the company and have been selling shares in the open market. Latest quarter promoter holding in Indusind Bank is 15.83% and last quarter promoter holding is 16.29%
Are mutual funds buying/selling Indusind Bank?
The mutual fund holding of Indusind Bank is decreasing. The current mutual fund holding in Indusind Bank is 27.55% while previous quarter holding is 30.31%.