IndusInd Bank
Indian private sector bank
From Wikipedia, the free encyclopedia
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]
 | |
| Company type | Public |
|---|---|
| Industry | Financial services |
| Founded | April 1994 |
| Founder | S. P. Hinduja |
| Headquarters | Mumbai, Maharashtra, India |
Key people |
|
| Products | |
| Revenue |  ₹56,351 crore (US$6.7 billion) (2025)[2] |
 ₹10,661 crore (US$1.3 billion) (2025)[2] | |
| ₹2,575 crore (US$300 million) (2025)[2] | |
| Total assets | ₹554,018 crore (US$66 billion) (2025)[2] |
| Total equity | ₹64,835 crore (US$7.7 billion) (2025)[2] |
| Owner | Hinduja Group (16.29%)[3] |
Number of employees | 44,974 (2025)[4][2] |
| Subsidiaries | BFIL[5] |
| Capital ratio | 15.31% [2] |
| Website | www |
History
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]
Operations
Controversy
Derivative accounting discrepancies
Between 2023 and 2025, IndusInd Bank identified accounting irregularities related to its forex derivatives transactions, after a September 2023 directive from the Reserve Bank of India (RBI) mandated banks to adopt mark-to-market valuation for derivatives. An initial internal review estimated the potential financial impact at ₹1,572 crore in December 2023, which was revised upward to ₹2,361 crore by May 2024.[20]
On 11 March 2025, IndusInd Bank's shares crashed over 27% after it disclosed the discrepancies, with analysts raising questions on the bank's internal controls.[21] IndusInd Bank's Managing Director and CEO, Sumant Kathpalia, resigned in April 2025, taking "moral responsibility" for the discrepancies. His resignation followed that of Deputy CEO Arun Khurana, who stepped down a day earlier.[22]
Independent audits were conducted by PwC and Grant Thornton, with Grant Thornton estimating a cumulative impact of approximately ₹1,960 crore. In April 2025, the bank reported a reduction in net worth of ₹1,979 crore, or 2.27%, following revaluation adjustments.[23][24][25]
Insider trading investigation
After the accounting discrepancies came to light, reports stated that SEBI began investigating possible insider trading by senior officials of the bank.[26][27] In May 2025, SEBI banned Kathpalia and four others from dealing in the share market,[28] accusing them of selling shares before the bank publicly announced the losses and avoiding about ₹20 crore in losses. SEBI froze their accounts and barred them from trading while the investigation continued.[29]
