Ashok Hinduja Supports IndusInd Bank Board Despite Fraud Concerns: All You Need To Know

Ashok Hinduja, the promoter of the private lender IndusInd Bank announced in a statement on Thursday his decision to support the bank despite its fraud concerns.

What Did Ashok Hinduja Say?

Ashok P. Hinduja, the Chairman of IIHL and the promoter of IndusInd Bank said, "I express my continued, unequivocal trust in the Chairman & Board of Directors of the Bank for their appropriate, swift actions in order to address discrepancies and attendant areas of concern."

In his announcement after the fourth quarter results of FY25, he added, " This would lead to higher standards of transparency and governance, leading to rebuilding trust in the Bank."

According to Hinduja, the coordinated efforts of current management under the guidance and monitoring of the Board and other stakeholders have ensured that the bank’s business remains healthy, with robust capital adequacy.

He further added that the continued confidence of the bank's customers, shows their trust in the institution, which has always been upheld.

"This shall be a new dawn with a sanitised slate to regain the position the Bank enjoyed for many decades," he said, adding, "The stance of the Regulator in addressing the issues in a very orderly manner with suitable guidance, as demonstrated by them in past for the banking sector, is commendable."

He further added that while the "Capital Adequacy if the Bank is quite healthy, for business growth, should any further equity be required, IIHL, as the promoter of IBL, remains committed to supporting the Bank, as it has done over the past 30 years."

IndusInd Bank On The Fraud Case

IndusInd Bank had also said that its internal audit department has revealed on May 21 that Rs 172.58 crore had been wrongly recorded as fee income in its microfinance business over three consecutive quarters ending December 2024. This discrepancy was reversed in the fourth quarter of the fiscal year 2024-25, leading to the reported loss. 

Also Read: Sun Pharmaceutical Q4 Results FY25: Board Recommends Final Dividend of Rs 5.50 — Check Record Date