The bank said that, with the Reserve Bank of India’s (RBI) approval, amendments will be made to its Articles of Association to empower the promoters to collectively nominate up to two directors.
To be sure, the promoters have 15.8 percent stake in IndusInd Bank, and Ashok P. Hinduja, chairman of the IndusInd International Holdings (IIHL), was cited as saying in the media in March that this was the ‘opportune time’ to increase stake in the lender. His comments on the promoter intent to boost IIHL equity in IndusInd came after the March 10 declaration of anomalies in derivatives accounting, an admission that overnight caused the stock to lose 27%.
Since then, IndusInd CEO Sumanth Kathpalia has exited, and the lender is now run by an executive committee.
The bank had reported a loss of Rs 2,329 crore in the March 2025 quarter, a drop of 200% year on year, having absorbed more than Rs 2,000 crore of losses from the admitted accounting gaps.
Currently, the promoters have one non-independent, non-executive director on the board. The approval for more board seats for the Hindujas is subject to the condition that the number of Non-Executive Non-Independent Directors, including nominee directors, does not exceed two.IndusInd had recorded a capital adequacy ratio of 16.24% at the end of March 2025. The tier 1 capital stood at 15.10%. To bolster its capital adequacy, the board has also approved raising up to Rs 10,000 crore in equity capital. This will be done through one or more instruments including Qualified Institutional Placement (QIP), American Depository Receipts (ADR), and Global Depository Receipts (GDR).
In addition, the board has cleared a proposal to raise up to Rs 20,000 crore through the issuance of debt securities on a private placement basis.
