While IndusInd Bank has been reeling under distress after a series of financial discrepancies over the past few months, its promoter Ashok Hinduja stood tall in support of the private sector lender. Per a report by CNBC TV18, Ashok Hinduja, chairman of IndusInd International Holdings Ltd (IIHL) said that though the Capital Adequacy of the Bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the Bank, as it has done over the past 30 years.
“Though the capital adequacy of the Bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the Bank, as it has done over the past 30 years,” Hinduja said.
On Thursday, IndusInd Bank reported a loss of Rs 2,328.92 crore for the fiscal fourth quarter on the back of repeated episodes of misgovernance. The Bank is confronted with a confluence of governance failures, accounting lapses, and strategic uncertainty.
The RBI, meanwhile, has launched investigations into the accounting discrepancies at the Bank. The Securities and Exchange Board of India (SEBI) is also investigating possible violations in the IndusInd Bank case, after the private sector bank raised the possibility of fraud involving ‘certain employees’ who had key roles in the accounting and financial reporting of the bank.
On May 20, IndusInd Bank’s internal audit department found that Rs 172.58 crore had been incorrectly recorded as fee income in the Microfinance (MFI) business over three quarters ending the December quarter, which has since been reversed in the fourth quarter of FY25.
This followed the resignation of IndusInd Bank CEO last month after widespread irregularities were discovered in its foreign exchange derivatives and microfinance portfolio.
Meanwhile, as quoted by IANS, Ashok Hinduja said, “The stance of the Regulator in addressing the issues in a very orderly manner with suitable guidance, as demonstrated by them in the past for the banking sector, is commendable.”
He also expressed “continued, unequivocal trust in the Chairman & Board of Directors of the Bank for their appropriate, swift actions in order to address discrepancies and attendant areas of concern.”