IndusInd Bank
IndusInd Bank Limited is an Indian banking and financial services company based in Mumbai. It was established in April 1994 and promoted by the Hinduja Group.
History
IndusInd Bank was among nine 'new-generation' banks that obtained a banking license in 1994; it was started by S. P. Hinduja along with hundreds of NRI and other shareholders. Named after the Indus Valley Civilisation, the bank began its operations on 17 April 1994, after being inaugurated by the then Union Finance Minister Manmohan Singh. It launched its initial public offering in 1997.In 2004, IndusInd Bank completed its merger with Ashok Leyland Finance, a vehicle financing company which was also part of the Hinduja Group.
IndusInd Bank listed on the Luxembourg Stock Exchange in 2007 by issuing global depository receipts worth. In 2008, it issued fresh GDRs worth.
In 2011, IndusInd Bank acquired Deutsche Bank India's loss-making credit cards division.
In October 2017, IndusInd Bank announced its acquisition of Bharat Financial Inclusion Limited for. The merger was officially completed in July 2019.
In April 2024, it piloted the Reserve Bank of India's programmable Central Bank Digital Currency, in collaboration with Circularity Innovation Hub, targeting the disbursement of CBDC to farmers in Maharashtra's Ratnagiri district in exchange for carbon credits.
Operations
As of March 2025, the bank has 41 million customers, 3,081 branches, and 3,027 ATMs in India. It is an empaneled banker for MCX. Its shares have been a part of the NIFTY 50 index since 1 April 2013.Controversy
Derivative accounting discrepancies
Between 2023 and 2025, IndusInd Bank identified accounting irregularities related to its forex derivatives transactions, after a September 2023 directive from the Reserve Bank of India mandated banks to adopt mark-to-market valuation for derivatives. An initial internal review estimated the potential financial impact at ₹1,572 crore in December 2023, which was revised upward to ₹2,361 crore by May 2024.On 11 March 2025, IndusInd Bank's shares crashed over 27% after it disclosed the discrepancies, with analysts raising questions on the bank's internal controls. IndusInd Bank's Managing Director and CEO, Sumant Kathpalia, resigned in April 2025, taking "moral responsibility" for the discrepancies. His resignation followed that of Deputy CEO Arun Khurana, who stepped down a day earlier.
Independent audits were conducted by PwC and Grant Thornton, with Grant Thornton estimating a cumulative impact of approximately ₹1,960 crore. In April 2025, the bank reported a reduction in net worth of ₹1,979 crore, or 2.27%, following revaluation adjustments.