Tag: IndusIndBank

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Leaders

Arijit Basu named part‑time chairman of IndusInd Bank

IndusInd Bank has appointed Arijit Basu, former Managing Director of the State Bank of India (SBI), as its new Part‑Time Chairman and Non‑Executive Independent Director, effective January 31, 2026. His term will run for three years, subject to shareholder approval and regulatory compliance.

Basu succeeds Sunil Mehta, whose term ends on January 30, 2026. Mehta, who has led the board since January 2023, opted not to seek reappointment. The transition has been approved by the bank’s board and the Reserve Bank of India (RBI).

Before joining IndusInd Bank, Basu was Chairman of HDB Financial Services, the non‑banking finance subsidiary of HDFC Bank, a role he resigned from to take up the new position. Basu’s career spans several decades in banking and financial services, including leadership roles as MD of SBI and CEO of SBI Life Insurance Company.

He holds a master’s degree from the University of Delhi and professional banking qualifications, and currently serves on multiple corporate boards and as an advisor to international financial firms. His appointment is expected to strengthen the bank’s governance and strategic oversight.

The move comes at a critical juncture for IndusInd Bank, which has faced financial pressures and regulatory scrutiny following accounting irregularities disclosed in 2025. The lender reported a 91% year‑on‑year decline in net profit, falling to ₹128 crore in the December quarter, due to higher provisions and lower interest income.

Basu’s appointment is seen as a step to restore stakeholder confidence, enhance governance, and guide the bank through restructuring efforts. IndusInd Bank has stated that Basu is fully eligible to hold directorship without regulatory disqualifications.

Industry experts note that his extensive experience across banking, insurance, and corporate governance positions him well to help IndusInd navigate its current challenges while focusing on long-term growth. With Basu at the helm, the bank aims to stabilize operations, improve investor trust, and reinforce its strategic direction in India’s competitive banking sector.

Also Read: IndusInd Bank Q3 net profit drops 91% to ₹128 cr

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Corporate

IndusInd Bank Q3 net profit drops 91% to ₹128 cr

Private sector lender IndusInd Bank reported a significant decline in financial performance for the third quarter of FY26 (ended 31 December 2025), reflecting ongoing headwinds in the banking sector. The bank’s net profit plunged sharply on a year‑on‑year (YoY) basis, while core interest income also weakened amid elevated provisions and cautious balance sheet management.

On a consolidated basis, IndusInd Bank posted a net profit of ₹128 crore in Q3, down nearly 91 per cent compared with ₹1,402 crore in the year‑ago quarter. Standalone profit after tax (PAT) fell 88.5 per cent to ₹161 crore, broadly in line with market estimates.

The bank’s Net Interest Income (NII), a key driver of bank earnings, contracted approximately 13 per cent YoY to around ₹4,562 crore, reflecting slower loan growth and margin pressures. However, NII showed a modest sequential improvement of about 3 per cent over the previous quarter. Net interest margins (NIMs) inched up slightly to 3.52 per cent from 3.32 per cent in Q2 FY26, indicating some stabilization in core lending spreads.

Fee and other non‑interest income also weakened, with total other income falling to ₹1,707 crore from ₹2,355 crore a year earlier, further compressing overall revenue. Pre‑Provision Operating Profit (PPOP) declined around 37 per cent YoY to ₹2,270 crore.

Asset quality remained under watch. Gross non‑performing assets (NPAs) increased to 3.56 per cent of gross advances, up from 2.25 per cent a year ago, while net NPAs rose to 1.04 per cent. The provision coverage ratio remained healthy at around 72 per cent, reflecting coverage against stressed loans.

On the balance sheet, total deposits and advances contracted versus the prior year, evidencing a cautious approach to growth.

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1 Minute-Read

SFIO probes IndusInd Bank over derivatives accounting irregularities

The Serious Fraud Investigation Office (SFIO) has launched an investigation into IndusInd Bank following alleged accounting discrepancies in its derivatives portfolio.

The bank informed stock exchanges that it received a notice under Section 212 of the Companies Act, 2013, and is cooperating fully. Audits and internal reviews flagged irregular accounting of derivative trades, overstated microfinance income, and unexplained “other assets” and “other liabilities.”

These irregularities led to major adjustments in the bank’s financial statements. SFIO’s probe will examine the nature and extent of these discrepancies and whether they involve deliberate misreporting or lapses in compliance.

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Corporate

IndusInd Bank faces ₹2,000 crore accounting probe

The Government of India has asked the Serious Fraud Investigation Office (SFIO) to investigate IndusInd Bank after auditors flagged accounting irregularities worth nearly ₹2,000 crore. The discrepancies cover several years, from 2015–16 to 2023–24, and involve potential errors in financial reporting, internal controls, and accounting of certain loans and fees.

Internal and external audits showed issues in the bank’s derivatives business and microfinance operations, including misclassified revenue and incorrectly booked income. Some key figures include ₹674 crore wrongly recorded as microfinance income, ₹595 crore as unexplained assets, and ₹172.6 crore mislabelled as fee income.

The Mumbai Police Economic Offences Wing (EOW) has been conducting a preliminary inquiry since August after the bank itself reported the problem. Officials say the investigation has so far found no evidence of fund diversion, and statements have been recorded from several current and former employees.

SFIO’s probe will examine audit reports, RBI filings, and internal documents to check for account manipulation, misclassification, related-party transactions, or any misuse of funds. Former executives, including ex-CEO Sumant Kathpalia, former Deputy CEO Arun Khurana, and ex-CFO Govind Jain, have been questioned as part of the investigation.

IndusInd Bank has assured that it has enough capital to cover the impact of these accounting adjustments and is cooperating fully with authorities. The SFIO investigation reflects a wider scrutiny of governance and financial practices at one of India’s leading private banks.

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