Business News

Mumbai: IndusInd Bank has not sought any fresh capital from its promoters even though it suffered a huge loss in its net worth following an accounting discrepancy, IIHL chairman Ashok Hinduja said on Tuesday. IIHL, the investment arm of Hinduja Group, has recently got RBI's in-principle approval to raise its stake in IndusInd Bank from 16 per cent to 26 per cent. According to Hinduja, IndusInd International Holdings Ltd (IIHL) -- the Mauritius-based promoters of the private sector lender -- has committed to infuse capital into the bank in case there is a requirement. However, the bank has not sought any fresh infusion as the overall capital adequacy is at a comfortable level of over 15 per cent, he told reporters on the sideline of an event. He further said that this is an opportune time for the promoters to raise their stake given the dip in the stock price, even though it will not be so beneficial for the bank as an institution. "...at this price, we would like to. Why me? Any shareholder. See the book value, see the net worth at this value. These are panic situations. In the panic situation, everybody gets worried," Hinduja said. On March 10, IndusInd Bank disclosed that it has found some discrepancies in its derivatives portfolio, which could have an adverse impact of about 2.35 per cent of the bank's net worth as of December 2024. Analysts peg the discrepancy at Rs 2,100 crore in absolute terms. Soon after the disclosure, the bank's scrip witnessed a massive price correction. IndusInd Bank also said that an external auditor is reviewing the matter, with a report expected by the end of March 2024. Hinduja said the report by external auditor PwC will help determine who is responsible for the accounting discrepancy in the bank. He declined to comment on the reasons for the resignation of the CFO Govind Jain or why the RBI gave incumbent CEO Sumant Kathpalia an extension of only one year. The bank does not have any promoter-appointed person as a director because of a policy of the Hinduja family not to do so, he said.