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Business Recorder
a day ago
- Business
- Business Recorder
India's IndusInd Bank posts quarterly profit drop as loans decline
BENGALURU: India's IndusInd Bank reported a quarterly profit drop on Monday, as its loans declined and funds kept aside for potential bad loans rose. The country's fifth largest private lender by assets said its profit fell 68% to 6.84 billion rupees ($78.93 million) for the quarter ended June 30. IndusInd reported its biggest-ever quarterly loss in the previous quarter, as it took a $230 million hit in the year ended March 31 due to years of misaccounting internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. Since then, the lender has reported a decline in loans. Loans fell 3.1% from a quarter earlier, while deposits fell 3.3%. Net interest income, the difference between interest earned and paid, fell to 46.40 billion rupees from 54.08 billion rupees a year earlier. The private lender has been grappling with elevated bad loans in its microfinance book, forcing it to set aside more funds to meet potential losses. IndusInd Bank to raise up to $3.5 billion, allow Hindujas to nominate two board seats Its provisions and contingencies rose 65.5% year-on-year to 17.38 billion rupees. Gross non-performing assets rose to 3.64% at June-end from 3.13% at March-end. IndusInd Bank approved raising up to $3.47 billion and allowing promoters to nominate two board directors, it said last week, as it seeks to restore investor confidence.
Economic Times
6 days ago
- Business
- Economic Times
IndusInd Bank shares in focus after board approves Rs 30,000-crore fundraising plan
IndusInd Bank shares will be in focus on Thursday after the bank's board of directors approved a fundraising plan of up to Rs 30,000 crore on Wednesday. ADVERTISEMENT According to an exchange filing, the bank will raise Rs 20,000 crore via debt securities, either in Indian currency or in permitted foreign currencies through private placement. Additionally, it will raise Rs 10,000 crore through equity instruments such as Qualified Institutional Placement (QIP), American Depository Receipts (ADR), or Global Depository Receipts (GDR). The fundraising comes in the backdrop of a $230 million hit to the bank's net worth in the fiscal year ended March 31, due to misaccounting of internal derivative trades over several years. This issue led to the resignations of CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April. The UK-based Hinduja family, which holds a 15.82% stake in the bank and is classified as a promoter group, has now been allowed to nominate up to two directors on the board, following approval from the Reserve Bank of India. Promoters previously had no board representation. IndusInd Bank is currently being run by an executive committee. As per a Reuters report, the bank has shortlisted Rajiv Anand, Rahul Shukla, and Anup Saha as potential candidates for the CEO position. Notably, Saha resigned as Managing Director of Bajaj Finance earlier this week. IndusInd Bank is scheduled to announce its Q1 results on July 28. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
6 days ago
- Business
- Time of India
IndusInd Bank shares in focus after board approves Rs 30,000-crore fundraising plan
IndusInd Bank shares will be in focus on Thursday after the bank's board of directors approved a fundraising plan of up to Rs 30,000 crore on Wednesday. According to an exchange filing, the bank will raise Rs 20,000 crore via debt securities, either in Indian currency or in permitted foreign currencies through private placement. Additionally, it will raise Rs 10,000 crore through equity instruments such as Qualified Institutional Placement (QIP), American Depository Receipts (ADR), or Global Depository Receipts (GDR). Explore courses from Top Institutes in Please select course: Select a Course Category Cybersecurity Leadership Operations Management Data Science Healthcare Digital Marketing Project Management Product Management PGDM Design Thinking Management Data Analytics Data Science Public Policy others Others Degree Technology healthcare Artificial Intelligence CXO Finance MCA MBA Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details The fundraising comes in the backdrop of a $230 million hit to the bank's net worth in the fiscal year ended March 31, due to misaccounting of internal derivative trades over several years. This issue led to the resignations of CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April. The UK-based Hinduja family, which holds a 15.82% stake in the bank and is classified as a promoter group, has now been allowed to nominate up to two directors on the board, following approval from the Reserve Bank of India . Promoters previously had no board representation. IndusInd Bank is currently being run by an executive committee. As per a Reuters report, the bank has shortlisted Rajiv Anand, Rahul Shukla, and Anup Saha as potential candidates for the CEO position. Notably, Saha resigned as Managing Director of Bajaj Finance earlier this week. IndusInd Bank is scheduled to announce its Q1 results on July 28. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
India.com
6 days ago
- Business
- India.com
IndusInd Bank To Raise Rs 30,000 Crore Via Debt, Equity Mix
Mumbai: The Hinduja family-promoted IndusInd Bank's Board of Directors on Wednesday approved raising up to Rs 30,000 crore through a combination of debt and equity and allowed the promoters to nominate two board directors, as it seeks to restore confidence in its operations after the recent Rs 2,000 crore accounting lapse. The lender will raise Rs 20,000 crore through debt securities in any permitted mode on a private placement basis, or its equivalent amount in permitted foreign currencies. It will also augment the capital base via the issue of securities, including American Depository Receipts, Global Depository Receipts, and Qualified Institutional Placement, amounting to Rs 10,000 crore. The bank said after the approval of the RBI, it will make amendments in its Articles of Association to give its promoters, the Hinduja family, the right to appoint two non-executive, non-independent Directors on the bank's board. The UK-based Hinduja family, which can now nominate up to two directors on IndusInd's board, did not previously have any representation on the board. Earlier this year, IndusInd Bank made a disclosure of accounting lapses in its derivatives portfolio. The bank appointed external agencies to assess the financial impact, which was later revealed to be around Rs 2,000 crore, and to find the root cause of the accounting errors. The bank's net worth took a big hit as the misaccounting of internal derivative trades was exposed. Taking moral responsibility for the lapses, the bank's CEO, Sumath Kathpalia, resigned in April, just a day after its former deputy CEO, Arun Khurana, left the bank. The Mumbai-based private lender reported a net loss of Rs 2,328 crore for the January-March period as accounting issues and stress in the microfinance portfolio led to the balance sheet taking a hit. IndusInd's Net Interest Income (NII) or core income declined by 43.4 per cent from the same quarter last year to Rs 3,048 crore. The asset quality of the bank deteriorated on a sequential basis, with Gross NPAs rising to 3.13 per cent of total loans from 2.25 per cent in the preceding October-December quarter, while net NPAs for the quarter stood at 0.95 per cent, up from 0.68 per cent in the previous quarter.
Business Recorder
6 days 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.
