Promoter Hinduja backs IndusInd CEO, says balance sheet strong

I have told the market and investors that our full support is there, like it always has been in the past. Ashok Hinduja Chairman, IndusInd International Holdings

- Satish John, Anshika Kayastha & Shayan Ghosh

Ashok Hinduja, chairman of IndusInd International Holdings Ltd (IIHL), the promoter of IndusInd Bank, expressed complete confidence in the ability of the bank's managing director (MD) and chief executive officer (CEO) Sumant Kathpalia to steer the lender through challenges. Hinduja's backing came on a day when IndusInd Bank's stock plunged 27.17% to its 52-week low. In an interview with Mint, Hinduja pointed out that the bank's net worth of ₹65,102 crore and other key metrics were adequate to absorb any setbacks arising from discrepancies of approximately ₹1,530 crore in the derivatives account balances. Edited excerpts:

Will the recent discrepancies flagged in the derivatives portfolio impact MD Kathpalia's tenure?

RBI (Reserve Bank of India) has reappointed him for one year. He already clarified that he came to know there was an issue in October, and they have also appointed a third-party agency. So why will it be a problem for him? It's a five-seven-year-old issue from when he was not heading the bank. In any case, nobody's asked him to discontinue and RBI has given him the reappointment letter after knowing everything.