IndusInd Bank has taken some big steps to regain investor trust and boost its financial strength. The bank’s board has approved a ₹30,000 crore fundraise, which will include ₹20,000 crore through debt and ₹10,000 crore through equity. The debt will be raised by private placement, either in Indian or approved foreign currencies. The equity part could be raised through qualified institutional placement (QIP), American Depository Receipts (ADRs), or Global Depository Receipts (GDRs). These plans will need to be cleared by shareholders and the Reserve Bank of India (RBI).
At the same time, the board has also approved a big governance change. The Hinduja Group, which owns about 15.8% of the bank, has now received RBI approval to nominate two directors to the board. These will be non-executive, non-independent directors, giving the promoters an official say for the first time. This change will be finalized if shareholders approve it during the Annual General Meeting (AGM) on August 29, 2025.
These changes come after a difficult year for IndusInd Bank. Last year, the bank faced a ₹2,000 crore net loss due to past mistakes in handling foreign exchange derivatives. This led to a leadership shake-up — both the CEO and Deputy CEO stepped down in April. An internal committee is now running operations while the bank searches for a new CEO, likely to be named before its Q1 results on July 28.
The new capital will help the bank lend more, protect against future losses, and stay within RBI’s capital rules. As of March, the bank had a healthy capital adequacy ratio (CAR) of about 16.2%, with Tier-I capital at 15.1%.
Investors are closely watching the bank’s next moves, especially the risk of equity dilution, how the funds will be used, and how the promoter’s role on the board might affect governance. Brokerages believe this capital raise, along with stronger leadership and promoter support, can help the bank bounce back and focus on growth.