The Reserve Bank of India has allowed HDFC Bank Ltd. to acquire up to 9.50% stake in IndusInd Bank Ltd., in the aftermath of a scandal that eroded the top line of the smaller private lender.
HDFC Bank has to acquire a major shareholding in IndusInd Bank within a year of approval on 15 December, failing which it will be cancelled, India's largest private bank said in a late-night exchange filing on Monday. The acquisition can be done at the group level, meaning HDFC Mutual Fund, HDFC Life Insurance, HDFC Pension Fund can pick up stakes in IndusInd Bank.
IndusInd reported its largest-ever quarterly loss in the three months ended 31 March 2025, following a $230-million scandal that involved its former CEO Sumant Kathpalia and Deputy CEO Arun Khurana earlier this year. The bank's board has faced criticism from investors over shortfalls in oversight and delays in disclosing the accounting lapses in its derivative portfolio, which led to a hit to the bank's accounts.
IndusInd is now in the process to raise up to $3.47 billion and allow promoters to nominate two board directors, indicating that it's on the path to a recovery from the scandal.
{{/usCountry}}IndusInd is now in the process to raise up to $3.47 billion and allow promoters to nominate two board directors, indicating that it's on the path to a recovery from the scandal.
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