The discrepancies found in IndusInd Bank’s derivatives portfolio, made over a period of 5-7 years and leading to an adverse impact on its net worth by ₹1,530 crore, has made its promoters uncomfortable about the corporate governance framework at the bank, Ashok P Hinduja, Chairman of IIHL (IndusInd International Holdings Ltd), told businessline in an exclusive interaction.
“Whenever such type of issues come, how can I say I am comfortable. I am not comfortable. Because, with such things happening over the last 5-7 years period, nobody will be comfortable,” he said.
“But unless I get a report, which will be known, then only we will get to know whether it was governance issue, technical issue or whether it was intention of somebody to do it. Because for so many years, audits have taken place,” he added.
IndusInd Bank’s net worth stood at ₹65,102 crore as of December 2024. The discrepancy disclosure by the bank came days after the Reserve Bank of India approved only a one-year extension to IndusInd Bank MD & CEO Sumanth Kathpalia, as against the board’s approval for a three-year term. Earlier too, the RBI had only approved a two-year term for Kathpalia, as against the bank’s request for a three-year tenure.
- Also read: BL Explainer: IndusInd’s derivative accounting: Decoding the discrepancies
RCAP buy
Hinduja was speaking here today on completion of the transaction to acquire debt-ridden Reliance Capital (RCAP) by transferring the entire bid amount to lenders. With the acquisition of RCAP, the Hinduja group would now focus on the growth of its BFSI ambitions and aim to list its two insurance arms over the period of next two years, he said.
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