IndusInd Bank to discuss fund-raising via bonds, other measures
What's the story
IndusInd Bank has announced its plan to discuss the possibility of raising funds by issuing long-term bonds. The discussion is scheduled for the bank's upcoming board meeting on July 23. The board will review proposals to issue bonds via private placement and explore raising capital through depository receipts and qualified institutional placements.
Capital strategies
Bank suffered $230 million loss
IndusInd Bank's decision comes after a massive $230 million loss in the fiscal year ended on March 31, due to misaccounting of internal derivative trades. This also led to the resignation of CEO Sumant Kathpalia and deputy Arun Khurana in April this year. In the wake of the financial loss and leadership exits, the bank is on the lookout for a new CEO.
Information
Shortlisting senior bankers from different financial institutions
IndusInd Bank has shortlisted senior bankers from three different financial institutions, including HDFC Bank. The upcoming board meeting will focus on capital-raising measures as the bank looks to stabilize and recover from recent setbacks.