Pvt sector lender IndusInd Bank to raise ₹30,000 crore via debt, equity

The board approved raising Rs 30,000 crore via debt and equity and cleared promoter rights to nominate two directors, pending RBI and shareholder approvals

Private sector lender IndusInd Bank’s board of directors on Wednesday approved a ₹30,000 crore fund raise through a combination of debt and equity instruments, and allowed the bank’s promoters to nominate upto 2 directors on the board, subject to Reserve Bank of India and shareholder approvals. 

Currently, the bank’s promoters have no representation on the bank’s board. The board is composed of non-executive directors only, as both the MD & CEO and deputy CEO resigned in April, taking responsibility for accounting lapses. 

In March this year, when the bank disclosed the discovery of discrepancies in its derivative portfolio resulting in losses over ₹ 2,000 crore, the bank’s promoter — Ashok Hinduja — had stated they are ready to inject capital in the bank if required. However, with the bank’s capital adequacy at comfortable levels, there is no immediate requirement for fresh funds, nor has the bank sought additional capital, he had stressed at the time. 

 

At Wednesday’s board meeting, clearance was secured to raise ₹20,000 crore through debt securities on a private placement basis or through permitted foreign currencies, subject to approval. Additionally, the lender will look to raise ₹10,000 crore to augment capital through issue or placement of securities, including American Depository Receipts (ADR), Global Depository Receipts (GDR), Qualified Institutional Placement (QIP), etc., subject to approvals.

 

As of March 2025, IndusInd Bank reported a capital adequacy ratio of 16.24 per cent, with tier I capital at 15.10 per cent and tier II at 1.14 per cent.   

Last year, the bank had secured a similar enabling approval to raise up to ₹30,000 crore through debt or equity. However, it did not proceed with the fundraising. “Such approvals are typically taken by banks as a precautionary measure, allowing them to tap the markets for funds when required,” a rating agency official said. 

The bank in Q4FY25 reported a net loss of ₹2,329 crore in the January-March quarter (Q4FY25), as it substantially ramped up provisions and reversed incorrectly booked revenue and income entries linked to accounting discrepancies in the derivatives and microfinance segments discovered during the quarter. 

The embattled lender had seen its MD & CEO Sumant Kathpalia and Deputy CEO Arun Khurana step down in April taking responsibility for ₹1,960 crore loss on its derivatives portfolio. Presently, a committee of senior executives is in charge of the lender’s operations. 

The bank’s board had submitted a list of three names for the MD & CEO position to the RBI on June 30, and is awaiting the regulator’s approval to appoint a new leader. 

IndusInd Bank is promoted by the Hindujas through IndusInd International Holdings Ltd. (IIHL), and IndusInd Ltd., with both these firms collectively holding 15.82 per cent stake in the bank. In March 2023, IIHL received in-principle approval from the RBI to raise its stake in the bank to 26 per cent.  

In a notification to the stock exchanges, the bank said its board of directors have approved, with approval of RBI, amendments in its Articles of Association empowering the promoters to collectively have the right to nominate upto two directors on the board, subject to shareholders’ nod. The two directors will be classified as non-executive non-independent directors (including nominee directors). 

Separately, the bank informed the exchanges that Jayant Deshmukh has ceased to be a non-executive Independent Director of the Bank, with effect from the close of working hours on Wednesday, July 23, 2025, upon completion of his tenure.