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How Indian bank IndusInd's push for profits and lax controls drove it to a crisis
The bank converted these foreign currency deposits into rupees to fund its loan growth in a highly competitive Indian banking sector, managing the interest rate and currency risks through hedging
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Reuters - Fri, 04, Apr 2025
- 13:14 EDT
- 67
FILE PHOTO: A man walks outside a branch of IndusInd Bank in New Delhi, India, September 23, 2024. / REUTERS/Anushree Fadnavis
IndusInd Bank ignored established Indian derivative accounting practices for years as it chased profit growth, resulting in a $175 million balance-sheet hole and the biggest crisis for the lender in its three-decade history, multiple sources said.
Still, the 2.35 percent shortfall in the net worth of India's fifth-biggest private sector lender may not have come to light last month had the rupee not sharply slumped recently, said the sources.
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