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.
