Ashok P Hinduja, Chairman of IndusInd International Holdings Ltd. (IIHL) and promoter of IndusInd Bank, has expressed his trust in the bank’s Chairman and Board of Directors, following the lender’s disappointing fourth-quarter results.
IndusInd Bank reported a net loss of ₹2,328 crore in the January–March quarter, significantly wider than the ₹514 crore loss estimated by a CNBC-TV18 poll.
This marks the first time in two decades that the lender has posted a quarterly loss, driven by an accounting discrepancy and rising stress in its microfinance portfolio.
In a statement issued after the results, Hinduja said he believes the board has taken “appropriate, swift actions” to address the discrepancies and related concerns. He added that these efforts would help raise governance and transparency standards and restore trust in the institution.
He also praised the management’s coordinated actions under board oversight, saying they had helped keep the business healthy and maintain robust capital adequacy.
“The continued confidence of the customers in the Bank shows their trust in the institution, which has always been upheld,” he said, adding that the bank is now poised for a fresh start.
Hinduja acknowledged the regulator’s orderly handling of the matter and welcomed the guidance extended. He reiterated that IIHL remains committed to supporting the bank with equity infusion if required for growth, as it has done over the past 30 years.
In a separate filing, IndusInd Bank stated that the Internal Audit Department submitted a report on May 20, where an amount of ₹172.58 crore was incorrectly recorded as fee income in the Microfinance business over three quarters ending December 31, 2024 and was reversed in the fourth quarter.
IndusInd Bank reported a net loss of ₹2,328 crore in the January–March quarter, significantly wider than the ₹514 crore loss estimated by a CNBC-TV18 poll.
This marks the first time in two decades that the lender has posted a quarterly loss, driven by an accounting discrepancy and rising stress in its microfinance portfolio.
In a statement issued after the results, Hinduja said he believes the board has taken “appropriate, swift actions” to address the discrepancies and related concerns. He added that these efforts would help raise governance and transparency standards and restore trust in the institution.
He also praised the management’s coordinated actions under board oversight, saying they had helped keep the business healthy and maintain robust capital adequacy.
“The continued confidence of the customers in the Bank shows their trust in the institution, which has always been upheld,” he said, adding that the bank is now poised for a fresh start.
Hinduja acknowledged the regulator’s orderly handling of the matter and welcomed the guidance extended. He reiterated that IIHL remains committed to supporting the bank with equity infusion if required for growth, as it has done over the past 30 years.
In a separate filing, IndusInd Bank stated that the Internal Audit Department submitted a report on May 20, where an amount of ₹172.58 crore was incorrectly recorded as fee income in the Microfinance business over three quarters ending December 31, 2024 and was reversed in the fourth quarter.
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