IndusInd Bank’s Promoter IIHL Says Ready to Infuse Equity if Required

IndusInd International Holdings Ltd. (IIHL), the promoter of IndusInd Bank, has confirmed it will provide equity support if required for business growth. The announcement came from Chairman Ashok P. Hinduja on May 22, following the bank’s financial disclosures for the fourth quarter of FY25.

As of 11:38 AM on May 23, 2025, IndusInd Bank share price was trading at ₹789.30, a 0.55% increase, with a 21.86% decline over the past 6 months and a 45.58% drop over the past year.

Q4 FY25 Earnings Results 

IndusInd Bank reported a net loss of ₹2,328.92 crore for the January-March quarter of FY25. This is the bank’s first quarterly loss in nearly 20 years. The loss was primarily due to the reversal of ₹172.58 crore, which had been incorrectly booked as fee income over 3 quarters ending December 2024. The discrepancy, flagged by the bank’s internal audit department, pertained to its microfinance business.

Read more: IndusInd Bank Detects ₹173 crore Fraud in Microfinance During Internal Audit

Fraud Suspected

The bank’s board stated in a post-earnings call that it suspects fraud involving certain senior employees tied to accounting and financial reporting. It has taken action under applicable laws, including reporting the matter to regulatory and investigative bodies. Audits and internal reviews are currently underway.

“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,” Hinduja said in a statement.

Internal Measures

The bank confirmed that the discrepancy was addressed in the 4th quarter and that governance measures are being reinforced. It also acknowledged ongoing communication with the Reserve Bank of India (RBI), which is monitoring the situation.

Conclusion

Following the accounting irregularities and the resulting quarterly loss, IndusInd Bank is undergoing audits and regulatory scrutiny. IIHL has stated its readiness to provide equity support if needed. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.