Latest news with #IIHL
India Today
3 days ago
- Business
- India Today
Under a cloud of fraud
May 22 was indeed a grim day for 76-year-old Ashok P. Hinduja, chairman of IndusInd International Holdings Ltd (IIHL) and promoter of IndusInd Bank. For the first time in nearly two decades, the bank reported a quarterly net loss—an alarming Rs 2,328 crore. The causes: accounting discrepancies, suspected fraud and mounting stress in its microfinance portfolio. Spooked investors sent the bank's shares tumbling. Both CEO Sumant Kathpalia and deputy CEO Arun Khurana had stepped down in April. On May 28, the Securities and Exchange Board of India (Sebi) passed an interim order against the duo over alleged insider trading, restraining them from accessing the securities market. Six days before, Sebi chief Tuhin Pandey had said the matter was actually 'RBI's remit'—the central bank was already on the case since March. Sebi would concern itself only 'if there are any egregious violations by anyone', Pandey said. Subsequent events imply something on those lines may have indeed gone on.
Khaleej Times
4 days ago
- 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.
India.com
4 days ago
- Business
- India.com
Months within being sold, Anil Ambani's former company turns profitable, post net profit of Rs 3150000000, sold due to…
Anil Ambani (File) Reliance General Insurance, a subsidiary of Reliance Capital recently acquired by IndusInd International Holdings Ltd (IIHL), posted a 12.5% rise in net profit, which is around Rs 315 crore for the fiscal year ending March 2025. The company's Gross Direct Premium (GDP) grew by 7.4% to Rs 12,548 crore, surpassing the general insurance industry's growth rate of 5.2%. Ambani had to sell it due to its debt. Net worth of the company also witnessed 10.2 per cent improvement to Rs 3,429 crore in FY25, Reliance General Insurance said in a statement. IIHL, which acquired Reliance Capital through the insolvency process in March this year, infused Rs 100 crore in May 2025 in the general insurance company reinforcing its financial strength and growth momentum. The company, which faced strong headwinds being under the Insolvency and Bankruptcy Code (IBC) for nearly three years, has been acquired by Hinduja-backed IIHL. To resurrect the position of the company, the new promoter infused capital amounting to Rs 300 crore during the insolvency process. Commenting on the company's performance, Reliance General Insurance CEO Rakesh Jain said the financial year 2024-25 marked a year of disciplined execution, strategic investments, and resilient growth, even in a dynamic and challenging market environment. 'We remain steadfast in our commitment to protecting the aspirations of millions of Indians through innovative and trusted insurance solutions,' he said. The successful conclusion of the CIRP of Reliance Capital Limited in March 2025 has opened a transformative new chapter under the stewardship of IIHL, he said. 'With IIHL's strong financial backing and proven expertise in financial services, we are confident in our ability to accelerate our growth journey and lead the next wave of innovation in India's general insurance sector,' he added. (With Inputs From PTI)
Time of India
25-05-2025
- Business
- Time of India
Reliance General Insurance net profit rises 12.5% to Rs 315 crore in FY25; eyes growth under new promoter IIHL
Reliance General Insurance, a subsidiary of Reliance Capital recently acquired by IndusInd International Holdings Ltd (IIHL), posted a 12.5% increase in net profit to Rs 315 crore for the financial year ended March 2025, as the company recovers from nearly three years under insolvency proceedings. The company's Gross Direct Premium (GDP) rose 7.4% year-on-year to Rs 12,548 crore, outpacing the general insurance industry's overall growth of 5.2%, according to a company statement. Net worth also saw a 10.2% rise to Rs 3,429 crore during FY25, PTI reported. IIHL, backed by the Hinduja Group, acquired Reliance Capital via the insolvency process concluded in March 2025 and subsequently infused Rs 100 crore into Reliance General Insurance in May 2025 to further strengthen the company's financial position and accelerate growth. During the insolvency resolution process itself, the new promoter had injected Rs 300 crore in capital to stabilise the insurer's operations. The company's solvency margin stood at 159% at the end of March 2025, comfortably above the regulatory requirement of 150%. Commenting on the performance, Reliance General Insurance CEO Rakesh Jain said, 'The financial year 2024-25 marked a year of disciplined execution, strategic investments, and resilient growth, even in a dynamic and challenging market environment.' He added, 'We remain steadfast in our commitment to protecting the aspirations of millions of Indians through innovative and trusted insurance solutions.' Jain said the successful completion of the Corporate Insolvency Resolution Process (CIRP) of Reliance Capital has opened a 'transformative new chapter' for the company under IIHL's stewardship. 'With IIHL's strong financial backing and proven expertise in financial services, we are confident in our ability to accelerate our growth journey and lead the next wave of innovation in India's general insurance sector,' he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
25-05-2025
- Business
- Business Standard
Reliance General Insurance net profit rises 12.5% to Rs 315 cr in FY25
Reliance General Insurance, an arm of Reliance Capital recently acquired by IndusInd International Holdings Ltd (IIHL), reported 12.5 per cent growth in net profit to Rs 315 crore for the financial year ended in March 2025. Gross Direct Premium (GDP) of the company rose to Rs 12,548 crore, an increase of 7.4 per cent over the last financial year, outpacing general insurance industry growth of 5.2 per cent. Net worth of the company also witnessed 10.2 per cent improvement to Rs 3,429 crore in FY25, Reliance General Insurance said in a statement. IIHL, which acquired Reliance Capital through the insolvency process in March this year, infused Rs 100 crore in May 2025 in the general insurance company reinforcing its financial strength and growth momentum. The company, which faced strong headwinds being under the Insolvency and Bankruptcy Code (IBC) for nearly three years, has been acquired by Hinduja-backed IIHL. To resurrect the position of the company, the new promoter infused capital amounting to Rs 300 crore during the insolvency process. Solvency margin stood at 159 per cent as against regulatory requirement of 150 per cent at the end of March 2025, it said. Commenting on the company's performance, Reliance General Insurance CEO Rakesh Jain said the financial year 2024-25 marked a year of disciplined execution, strategic investments, and resilient growth, even in a dynamic and challenging market environment. "We remain steadfast in our commitment to protecting the aspirations of millions of Indians through innovative and trusted insurance solutions," he said. The successful conclusion of the CIRP of Reliance Capital Limited in March 2025 has opened a transformative new chapter under the stewardship of IIHL, he said. "With IIHL's strong financial backing and proven expertise in financial services, we are confident in our ability to accelerate our growth journey and lead the next wave of innovation in India's general insurance sector," he added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
