Latest news with #AshokHinduja
Khaleej Times
29-05-2025
- Business
- Khaleej Times
IndusInd Bank gets promoter backing amid financial recovery
In a move to restore confidence, IndusInd International Holdings (IIHL), the promoter of IndusInd Bank, has pledged to strengthen the bank's equity capital following scrutiny over accounting discrepancies in its derivatives trading. The assurance comes as the bank, which operates a representative office in Dubai catering to non-resident Indian (NRI) services, navigates a challenging period marked by a significant financial misstatement. Ashok P. Hinduja, chairman of IIHL, expressed unwavering support for the bank's leadership, stating, 'I have unequivocal trust in the chairman and board of directors for their swift and appropriate actions to address discrepancies and related concerns.' This commitment underscores IIHL's long-standing role as a steadfast supporter of IndusInd Bank over the past three decades. The IIHL, with significant shareholding from UAE-based residents, is backed by the Hinduja Group, a 110-year-old multinational conglomerate, with multiple business interest in the UAE and the Middle East. The group has topped the Sunday Times UK Rich List at £35.3 billion for the fourth successive year in 2025. In the UAE, the group has diversified business interests ranging from petrochemicals, and finance to bus/truck manufacturing. In Ras Al Khaimah, the group's Ashok Leyland operates a commercial vehicle assembling facility. The lender reported a profit of $309.5 million for the fiscal year 2025, a sharp 70 per cent decline from the previous year's $1.07 billion, primarily due to a $235 million hit from accounting irregularities in derivative transactions. On March 10, 2025, the bank disclosed the misstatement, which impacted 2.35 per cent of its net worth, equivalent to approximately Rs15.77 billion. The announcement triggered a 27 per cent plunge in the bank's stock price on March 11, erasing nearly Rs200 billion in market capitalization and leading to its inclusion in the Futures & Options (F&O) ban list. Despite the setback, the Reserve Bank of India (RBI) intervened to reassure stakeholders, affirming that IndusInd Bank remains 'well-capitalised' with a 'satisfactory' financial position. The RBI directed the bank's board to implement corrective measures, prompting a partial recovery in share prices. Data from the bank's latest financial disclosures indicate a capital adequacy ratio well above regulatory requirements, providing a buffer for operational stability. IIHL, which has 600 globally dispersed high-net-worth individual (HNWI) among its stakeholders, is poised for ambitious growth. The promoter aims to expand its Banking and Financial Services (BFSI) business to a $50 billion valuation by 2030 through strategic acquisitions in India, Europe, and the Middle East. This follows IIHL's recent $1.17 billion acquisition of Reliance Capital in India, signaling its intent to bolster its financial services portfolio. Hinduja emphasised IIHL's readiness to inject additional equity if needed for business expansion, stating, 'Though the bank's capital adequacy is healthy, we remain committed to supporting IndusInd Bank's growth.' He highlighted the board's remedial actions, which are expected to enhance transparency and governance, rebuilding stakeholder trust. 'The coordinated efforts of management, under the board's guidance, have ensured robust business health and sustained customer confidence,' Hinduja added. The RBI's orderly approach to addressing the issue has been praised, with Hinduja noting its history of providing effective guidance to the banking sector. As IndusInd Bank implements corrective measures, the promoter's backing and the regulator's oversight signal a path toward recovery. Hinduja described the situation as 'a new dawn with a sanitised slate,' positioning the bank to reclaim its longstanding reputation for reliability and trust in the financial sector.
Zawya
23-05-2025
- Business
- Zawya
Promoter, IIHL, Assures support to IndusInd Bank, ready to shore up equity capital
Dubai: IndusInd International Holdings (IIHL), the promoters of IndusInd Bank, which has a representative office in Dubai offering NRI services, today assured support to the bank facing scrutiny over accounting discrepancy issue across its derivatives trades. In a statement, Ashok P. Hinduja, Chairman, IIHL, expressed his 'unequivocal trust in the Chairman & Board of Directors of the Bank for their appropriate, swift actions in order to address discrepancies and attendant areas of concern.' The bank managed to record a profit of US$309.5million for FY25, which was 70% lower primarily because of a hit of USD 235 million in accounting discrepancies than US$1.07 billion in the previous year. IIHL has a significantly large shareholding from the UAE residents out of it 600 globally dispersed HNWI stakeholders, and has plans to expand its Banking and Financial Services (BFSI) business to a targeted valuation of US$50 billion through acquisitions in India, Europe and the Middle East by 2030, following the recent US$ 1.17 billion takeover of Reliance Capital in India. 'Though the Capital Adequacy of the Bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the Bank, as it has done over the past 30 years,' Mr. Hinduja said in the statement. He said the remedial actions taken by the IndusInd Board would lead to higher standards of transparency and governance, leading to rebuilding trust in the Bank. 'The coordinated efforts of current management under the guidance and monitoring of the Board and other stakeholders have ensured that the bank's business remains healthy, with robust capital adequacy. The continued confidence of the customers in the Bank shows their trust in the institution, which has always been upheld,' Mr. Hinduja said, adding that 'this shall be a new dawn with a sanitised slate to regain the position the Bank enjoyed for many decades.' He also said the stance of the regulator in addressing the issues in a very orderly manner with suitable guidance, as demonstrated by them in past for the banking sector, is commendable.
Time of India
23-05-2025
- Business
- Time of India
Amid probe, IndusInd Bank gets promoter Hindujas' backing
MUMBAI: Amid a probe by markets regulator Sebi, IndusInd International Holdings (IIHL), the original promoter of IndusInd Bank, on Thursday reaffirmed its support for the bank's board and management following the disclosure of a large-scale accounting fraud in the March quarter and vowed to pump in equity capital, if required. Ashok Hinduja , chairman of IIHL, said he had "continued, unequivocal trust in the chairman and board of directors of the bank for their appropriate, swift actions in order to address discrepancies and attendant areas of concern." He said the management, under the board's supervision, had preserved capital strength and maintained the bank's core business. "This shall be a new dawn with a sanitised slate to regain the position the bank enjoyed for many decades," Hinduja said in a statement. Despite the bank posting a net loss of Rs 2,329 crore in the March quarter-its worst performance in two decades-IndusInd Bank's shares closed 1.8% higher on Thursday at Rs 785.10, recovering from a nearly 6% intraday fall. Analysts, however, remained cautious amid indications that the disclosure of a fraud coud put the bank and its key functionaries under spotlight once again. Other agencies may also enter the scene to probe the fraud. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo Suresh Ganapathy of Macquarie said, "We need to look at every line item with a fine tooth comb and wait for business to stabilise and see what the eventual loan mix would be and what the priorities of the new CEO are." In Delhi, Sebi chairman Tuhin Kanta Pandey said the regulator was examining "egregious violations" by senior IndusInd Bank officials. He said RBI would address supervisory aspects, while Sebi was looking into potential breaches in the securities market domain. "The RBI is looking into whatever Sebi has to do in relation Sebi's remit is doing... If there are any egregious violations by anyone in their capacity, Sebi is looking into it," Pandey told reporters on the sidelines of an event organised by Assocham. The bank has reported the matter to investigative agencies and the govt. An internal audit found that senior officials, including former key management personnel, had overridden internal controls across the derivatives and microfinance portfolios. The impact of irregularities has been pegged at Rs 3,400 crore, including a Rs 1,960 crore misstatement in derivative trades, Rs 674 crore in interest income reversals, and a Rs 172 crore fraud in MFI operations.
Business Recorder
22-05-2025
- Business
- Business Recorder
India's IndusInd rebounds on bets bank has come clean on accounting issues
BENGALURU/MUMBAI: Shares of India's IndusInd Bank rebounded from sharp falls on Thursday on bets that the worst was behind the private lender, a day after it logged a record quarterly loss, hit by past accounting discrepancies. Its stock swung wildly through the day, losing as much as 6% in the morning session to hit an intraday low of 725.8 rupees and then recovering to climb as much as 9.8% to 796.7 rupees, an intraday high. It closed 2% higher. IndusInd disclosed in March that years of incorrect accounting of internal derivative trades led to a $230 million hit to its accounts. Separately, an internal audit of its microfinance business found that around $80 million was incorrectly recorded as interest over three quarters. On Wednesday, the lender posted its largest-ever quarterly loss and said it suspected fraud by some employees led to accounting lapses. The bank's financials reflect full and fair representation of all the concerns brought to its attention, IndusInd Bank's Chairman Sunil Mehta said in a post-earnings conference call on Wednesday. Six officials of India's IndusInd Bank under investigation for insider trading, sources say The lender's promoter IndusInd International Holdings was committed to infusing liquidity into the bank if the need arises, chairman Ashok Hinduja said in a statement. Promoter is an Indian market term for large shareholders. Yes Securities said the latest quarter seemed like IndusInd's 'attempt to come clean.' Jefferies analysts added that while uncertainty and low profitability will remain concerns for the bank, 'historical trends indicate that current valuations are near lows'. At least six brokerages downgraded their ratings on the stock after the results and 13 slashed their price targets on concerns over profitability and uncertainty over management succession. IndusInd's CEO, Sumant Kathpalia, and deputy, Arun Khurana, stepped down last month. 'There is no clarity on new management team, how they gain investor confidence, improve profitability and importantly, whether they will execute better than peers,' HSBC said.
Time of India
14-05-2025
- Business
- Time of India
Reliance Nippon Life FY25 net profit rises 25% to Rs 247 crore
Mumbai: Reliance Nippon Life Insurance (RNLIC) reported a 25% increase in profit before tax to Rs 247 crore for FY25, compared to Rs 198 crore a year earlier. The company attributed the growth to stable business momentum and operational resilience. Assets under management rose 9% to Rs 38,725 crore, while total premium grew to Rs 5,711 crore. New business premium stood at Rs 1,245 crore. The solvency ratio remained strong at 235%. RNLIC, jointly owned by Reliance Capital (51%) and Nippon Life (49%), is set for a strategic shift following Reliance Capital's acquisition by the Hinduja Group through IndusInd International Holdings. IIHL Chairman Ashok Hinduja said capital infusion and listing of the insurance entities are planned over the next two years. The claim settlement ratio improved to 98.9%, with Rs 3,523 crore disbursed to 5.4 lakh customers. Persistency stood at 80.8%, and the active advisor base grew 13% to nearly 69,000. Embedded value increased to Rs 7,397 crore from Rs 6,885 crore. The company launched six new products during the year and continues to be one of the largest non-bank-backed private life insurers, with over 10 million policyholders and 713 branches. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
