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Business Recorder
8 hours ago
- Business
- Business Recorder
IndusInd Bank to raise up to $3.5 billion, allow Hindujas to nominate two board seats
India's IndusInd Bank will raise up to $3.47 billion and allow promoters to nominate two board directors, the private sector lender said on Wednesday, as it seeks to restore confidence after a $230 million accounting lapse. IndusInd is looking to secure 300 billion rupees in funding, comprising a 200 billion rupees debt issue on a private placement basis and a 100 billion rupees capital increase through issue or placement of securities. The bank's net worth took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. The UK-based Hinduja family own a 15.82% stake in the bank and are listed as its promoters, a regulatory classification in India for large shareholders who control key decision-making. India's IndusInd Bank to consider raising funds The Hindujas can now nominate up to two directors on IndusInd's board, the bank said, adding that the move was approved by India's central bank. Promoters previously did not have representation on the board. IndusInd, currently run by an executive committee, has shortlisted three senior bankers - Rajiv Anand, Rahul Shukla, and Anup Saha - for the position of CEO, Reuters reported last month. Saha resigned as non-bank lender Bajaj Finance's managing director on Monday. IndusInd will report its first-quarter results on July 28.
Time of India
9 hours ago
- Business
- Time of India
IndusInd Bank to raise up to $3.5 billion, allow Hindujas to nominate two board seats
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's IndusInd Bank will raise up to $3.47 billion and allow promoters to nominate two board directors, the private sector lender said on Wednesday, as it seeks to restore confidence after a $230 million accounting is looking to secure 300 billion rupees in funding, comprising a 200 billion rupees debt issue on a private placement basis and a 100 billion rupees capital increase through issue or placement of bank's net worth took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in UK-based Hinduja family own a 15.82% stake in the bank and are listed as its promoters, a regulatory classification in India for large shareholders who control key Hindujas can now nominate up to two directors on IndusInd's board, the bank said, adding that the move was approved by India's central previously did not have representation on the currently run by an executive committee, has shortlisted three senior bankers - Rajiv Anand, Rahul Shukla, and Anup Saha - for the position of CEO, Reuters reported last resigned as non-bank lender Bajaj Finance's managing director on will report its first-quarter results on July 28.
Reuters
10 hours ago
- Business
- Reuters
India's IndusInd Bank to raise up to 300 billion rupees
July 23 (Reuters) - India's IndusInd Bank ( opens new tab will raise up to 300 billion rupees ($3.47 billion), the private lender said on Wednesday. IndusInd will issue debt worth 200 billion rupees on a private placement basis and also increase capital by 100 billion rupees through an additional issue or placement of securities. The bank took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. IndusInd will report its first-quarter results on July 28. ($1 = 86.3730 Indian rupees)
Business Recorder
5 days ago
- Business
- Business Recorder
India's IndusInd Bank to consider raising funds
IndusInd Bank will consider a proposal to raise funds by issuing long-term bonds at its board meeting on July 23, the Indian lender said on Friday. The board will consider issuing the bonds on a private placement basis and whether to increase capital through depository receipts and qualified institutional placements. The bank took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. India's Bandhan Bank quarterly profit slumps on higher bad loan provisions It has shortlisted senior bankers from three other financial organizations, including HDFC Bank, for the position of CEO, Reuters reported in June.
Mint
02-07-2025
- Business
- Mint
IndusInd Bank hit by Goldman downgrade; stock tumbles 3.5% on growth concerns
Shares of IndusInd Bank declined 3.5 percent on Wednesday, July 2, making it the top loser on the Nifty index after global brokerage Goldman Sachs downgraded the private sector lender to a 'Sell' from its earlier 'Neutral' rating. The brokerage cited structural concerns in the bank's business model and pointed to weak franchise fundamentals. Goldman Sachs reduced its earnings projections for IndusInd Bank, slashing FY26 and FY27 earnings per share (EPS) estimates by 25 percent and 17 percent, respectively. The brokerage also revised its target price to ₹ 722 from an earlier ₹ 634, citing persistent challenges in the bank's growth trajectory. "Even after business normalisation in the second half of FY26 and FY27, IndusInd Bank will likely continue to face growth headwinds," Goldman Sachs said in its report. It attributed this outlook to the bank's market share loss in both loan and deposit portfolios, deteriorating revenue engines such as yields and fee income, and weakening operational controls. Goldman Sachs also said that the bank's Return on Assets (RoA) is expected to reset lower in the medium term, further limiting its valuation upside. 'The bank's franchise has weakened with declining productivity across branches and falling yields due to portfolio mix adjustments,' the brokerage noted. As a result, Goldman Sachs expects IndusInd Bank's valuation to remain below its book value due to poor visibility on turnaround efforts. Separately, investor confidence in IndusInd Bank has been rattled by governance concerns. The bank recently faced a $230 million hit for the year ended March 2025 due to long-standing misaccounting of internal derivative trades, which triggered the resignations of CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April. An internal audit of its microfinance vertical further revealed that nearly $80 million had been incorrectly classified as interest income across three quarters, which was reversed in January. These irregularities led to higher-than-expected losses in the March 2025 quarter, coupled with increased slippages in the microfinance business. In the aftermath, the bank has reportedly shortlisted three senior executives—Rajiv Anand, Rahul Shukla, and Anup Saha—for the CEO post and submitted the list to the Reserve Bank of India (RBI) for approval. Following the downgrade, IndusInd Bank shares fell to an intra-day low of ₹ 848 on July 2. The stock is now over 43 percent below its 52-week high of ₹ 1,498.70, touched in September 2024. It had earlier hit a 52-week low of ₹ 605.40 in March 2025. Over the past 12 months, the banking stock has fallen nearly 40 percent. While it posted a 6.7 percent gain in June, this came after a 2.5 percent drop in May. The stock had surged 29 percent in April, recovering partially from a sharp 34.5 percent decline in March, which was triggered by the financial irregularities and leadership exits. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
