NEWS
IndusInd Bank to raise Rs 30,000 cr; Hindujas to nominate two board seats
IndusInd Bank gets nod from shareholders to raise up to Rs 30,000 cr via mix of debt and equity; allows promoters to nominate two board directors.
IndusInd Bank gets nod from shareholders to raise up to Rs 30,000 cr via mix of debt and equity; allows promoters to nominate two board directors.
IndusInd Bank has got approval from shareholders to raise up to Rs 30,000 crore through a mix of debt and equity.
The private sector lender, which was hit by accounting lapses and fraud in the microfinance portfolio, also said on Wednesday that it will allow promoters to nominate two board directors.
The Hinduja family, classified as promoters of the bank, owns 15.82% stake.
The promoters previously did not have representation on the board.
The fundraise raise will comprise a Rs 200-crore debt issue on private placement basis and a Rs 100-crore capital increase through issue or placement of securities.
IndusInd Bank’s net worth took a $230 million hit in FY25 due to years of accounting lapses in internal derivative trades. This led to the resignations of CEO Sumant Kathpalia and deputy CEO Arun Khurana in late April, following which the board appointed a committee of executives to oversee the operations, until a new MD & CEO assumes charge or three months expire.
