New Delhi, Jul 23 (PTI) IndusInd Bank, which reported a net loss of Rs 2,328.9 crore in the last quarter, on Wednesday said its shareholders have approved raising up to Rs 30,000 crore through a mix of debt and equity.
The private sector bank had a consolidated net loss of Rs 2,328.9 crore in the March quarter of 2024-25 due to accounting lapses and fraud in the microfinance portfolio.
The shareholders at the 31st annual general meeting also approved a proposal to permit promoters to appoint two directors on the board of the bank, IndusInd Bank said in a regulatory filing.
The Hinduja family owns 15.82 per cent stake in the bank and are classified as its promoters.
With approval of the Reserve Bank of India, amendments in Articles of Association of the bank empower promoters to collectively have the right to nominate up to two directors on the board subject to non-executive non-independent directors (including the nominee directors) not exceeding two in number, subject to approval of shareholders, it said.
Currently, the promoters have one non-independent non-executive director on the board.
With regard to capital raising, it said shareholders approved raising of funds through debt securities in any permitted mode on a private placement for an aggregate amount of Rs 20,000 crore or its equivalent amount in permitted foreign currencies, subject to approval of the members of the bank and receipt of regulatory/statutory approvals, as applicable.
Besides, they also cleared a proposal to raise capital through further issue or placement of securities including American Depository Receipts, global depository receipts, qualified institutional placement, etc, for an aggregate of Rs 10,000 crore or its equivalent amount in permitted foreign currencies.
In March, the bank reported a Rs 1,979 crore accounting lapse in its derivative portfolio, followed by its internal audit review finding Rs 674 crore incorrectly recorded as interest from microfinance business, besides a Rs 595 crore "unsubstantiated balances" in "other assets" of balance sheet.
On April 29, then CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which IndusInd Board appointed a committee of executives to oversee the operations, till a new MD & CEO assumes charge, or a period of three months.