The Board of Directors of indusind Bank Limited ("the Bank") have pleasure in presenting its report covering business and operations of the Bank, together with the Audited Financial Statements for the financial year ended March 31, 2025.
The financial performance for the financial year ended March 31, 2025, is summarized as under:
Particulars
|
As on March 31, 2025
|
As on March 31, 2024
|
Deposits
|
4,11,078.14
|
3,84,792.92
|
Advances
|
3,45,018.63
|
3,43,298.27
|
Operating Profit (before Provisions and Contingencies)
|
10,644.86
|
15,740.27
|
Net Profit
|
2,642.90
|
8,949.78
|
The Bank demonstrated traction in operating performance metrics, like disbursements, resource mobilization through deposits.
Our deposits grew by 6.83% for the year. Balance sheet footage crossed ?5.5 trillion mark as of March 31, 2025.
The Bank maintained profitability amidst a challenging operating environment with operating profit before provisions and contingencies of ^10,644.86 crores (compared to ^15,740.27 crores in previous year). Net interest Margin of the Bank stood at 3.62%. Further, total Provisions and Contingencies including income tax provision increased by 17.84% from ^6,790.49 crores to ^8,001.96 crores. Net Profit amounted to ^2,642.90 crores, as against ^8,949.78 crores in the previous year.
Appropriations
The Directors recommend appropriation of Profit as under:
Operating Profit before Provisions and Contingencies
|
10,644.86
|
Less: Provisions and Contingencies inclusive of income Tax
|
8,001.96
|
Net Profit
|
2,642.90
|
Profit Brought Forward
|
29,176.02
|
Amount available for Appropriation.
|
31,818.92
|
Transfer to Statutory Reserve
|
660.72
|
Transfer to Capital Reserve
|
196.17
|
Dividend Paid
|
1,284.90
|
Total Appropriations
|
2,141.79
|
Balance carried over to Balance Sheet
|
29,677.13
|
Dividend
The Basic Earning Per Share (EPS) of the Bank during the year was ^33.93 compared to ^115.19 in the previous year.
The Board of Directors of the Bank has not proposed any dividend for the financial year ended March 31, 2025.
The Dividend Distribution Policy of the Bank can be accessed from Bank's website at:
https://www.indusind.com/content/dam/indusind-corporate/
investor-resource/PoliciesoftheBank/indusind-Bank-Limited-
Dividend-Distribution-Policy.pdf.
Financial performance and state of the affairs of the Bank
The year under review was the second year of the 6th Triennial Planning Cycle of the Bank, (Planning Cycle 6) with the theme of "Growth, Granularity and Governance (3G in short)".
The Bank continued execution on the strategic priorities during the course of the year along with navigating cyclical asset quality issues especially in the unsecured segments.
However, the Bank faced multiple material developments since March 2025. These developments have been unfortunate to have taken place in a bank. Upon being made aware of the irregularities since March 2025, the Board has taken active steps in understanding and addressing all areas of concern holistically and disclosing progress transparently at the appropriate stages.
The Board and the Management set forth its desire of maintaining trust in the institution by aspiring for and implementing higher standards of transparency and compliance. in particular, the Bank has taken several measures to understand the root cause of the identified irregularities, ascertain the financial impact and take corrective actions as well as fix accountability etc.
The Bank has appropriately accounted for and reflected the impact while finalizing the results for the year ended March 31, 2025. The Bank's financials now reflect full and fair representation of all the concerns brought to its attention.
Overall, the Bank's balance sheet remains robust after fully absorbing adverse financial impact. The Bank has been profitable for the FY25 with Profit After Tax of ? 2,642.90 crores. The bank's balance sheet remains healthy after absorbing all these impacts with a Capital Adequacy Ratio of 16.24%, Provision Coverage Ratio of 70% and average Liquidity Coverage Ratio of 118% with excess liquidity of ? 39,600 crores.
The Board and the Management is committed to taking all necessary steps to restore the trust and confidence in the institution. The Bank continues to execute its strategy of focusing on domains like vehicle finance, retailisation of liabilities, scaling up SME and new businesses and building a One Bank approach. The growth will be achieved with a cultural shift towards right compliance and governance framework with open and honest communication with all stakeholders.
The Board along with the Management have shown a strong resolve to address all the identified issues in timely and comprehensive manner. The Bank has a robust Networth and balance sheet even after absorbing impact from all the past anomalies. The learnings from these incidents will be imbibed to reinforce the governance and compliance culture of the organisation. The Bank at its core has profitable business model and it will pivot towards sustainable growth as we put this episode behind us. The Bank would like to express its gratitude to the regulators and particularly the Reserve Bank of India for its support and guidance in helping navigating these challenging times.
Some of the significant matters during the year are listed below:
• Internal Trades Derivative Accounting under the head 'Other Assets' amounting ?1,959.98 crores being accumulated notional profits since FY 2015-16 have been written off as a prior period item in the current financial year.
• In conducting a review of the Bank's microfinance portfolio for the period ended December 31, 2024, the Internal Audit Department ('IAD') of the Bank noted incorrect accounting and subsequent reversal of cumulative interest income of ^673.82 crore and Fee Income of ? 172.58 crores within the current financial year.
• Certain incorrect Manual Entries posted in the 'Other Assets' and 'Other Liabilities' pertaining to prior years amounting to ? 595 crores has been set off during the current financial year. This has no impact on the financial results of the Bank for the year ended March 31, 2025.
• During the internal review it was noted misclassification of certain microfinance loans as crop loans which has been resulted into incorrect classification of such loans as 'standard assets' along with accrual of interest income. The Bank has corrected this classification resulting in an additional recognition of Non-Performing Advances aggregating to ? 1,885.19 crores. The Bank made a provision for these at a rate of 95% aggregating to ?1,791.08 crores and reversed interest of ^178.12 crores.
Change in the Nature of Business
During the year under review, there has been no change in the nature of business of the Bank.
Performance of Subsidiary and Associate Company
During the year under review, Bharat Financial Inclusion Limited ("BFIL"), the wholly owned subsidiary of the Bank, earned revenue of ?2,411.50 crores as against ^2,334.64 crores earned during the previous year. The Net Loss for the year under review amounted to ^67.49 crores as against profit of ^27.21 crores in previous year. As a Business Correspondent undertaking, the strength of BFIL lies in its talent pool of trained and motivated employees that stood at 50,604 as on March 31, 2025.
IndusInd Marketing and Financial Services Private Limited ("IMFS") is an Associate Company of the Bank as 30% of its share capital is held by the Bank. IMFS is engaged in the business of providing manpower services, and during the year under review, earned a revenue of ^460.31 crores as against ^466.12 crores earned in the previous year. The net profit earned by IMFS during the year under review amounted to ?0.44 crores as against ?1.02 crores earned in the previous year. IMFS had 11,836 employees on its rolls as on March 31, 2025.
Pursuant to Section 129(3) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules, 2014, the Bank has drawn up Consolidated Financial Statements including the Financial Statements of its Subsidiary Company and financial results of Associate Company, and such Consolidated Financial Statements are included in this Integrated Annual Report.
In accordance with the fourth proviso to Section 136(1) of the Companies Act, 2013, the Standalone Financial Statements and the Consolidated Financial Statements, including audited accounts of
BFIL and IMFS and all other documents required to be attached thereto have been hosted on the website of the Bank at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
A statement containing the salient features of the financial position of the Subsidiary and Associate Company in Form AOC-1 is enclosed as 'Annexure' to the Financial Statements.
The Bank does not have any joint venture company and the subsidiary is not a material subsidiary in terms of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ["SEBI Listing Regulations"].
Share Capital
During the year under review, authorized capital of the Bank was at ^1,000.00 crores.
The issued, subscribed and paid-up share capital of the Bank as at March 31, 2025 is ^779.05 crores comprising of 77,90,54,472 equity shares of face value of ?10 each.
During the year under review, the Bank has allotted 7,34,521 equity shares of ?10 each pursuant to exercise of options by option holders under its various Employee Stock Option Schemes ("ESOS"). The equity shares allotted under ESOS ranks pari-passu with the existing equity shares issued and allotted by the Bank. The share capital of the Bank increased by ?0.73 crores and share premium by ^60.72 crores on account of the said allotment.
Debentures
Being a Scheduled Commercial Bank, compliance with the SEBI Circular on fund-raising by issuance of Debt Securities by Large Entities is not applicable to the Bank.
In compliance with Regulation 53 of the SEBI Listing Regulations, the names of the Debenture Trustees with their contact details are given below:
Trustee
|
Name of Debenture
|
: Catalyst Trusteeship Limited
|
Trustee
|
(formerly GDA Trusteeship Ltd.)
|
Address
|
: GDA House, S. No.94/95, Plot No.85, Bhusari Colony (Right), Paud Road, Pune - 411038, Maharashtra, India
|
Website
|
: www.catalysttrustee.com
|
E-mail
|
: dt@ctltrustee.com
|
Tier 1 Capital
During FY 2024-25, the Bank has not raised any non-equity Tier 1 capital. As on March 31, 2025, the Bank had no non-equity Tier 1 capital instruments.
Tier 2 Capital
During FY 2024-25, the Bank has not raised any Tier 2 capital. As on March 31, 2025, the value of outstanding Tier 2 Capital instruments is ^2,800.00 crores.
Deposits
The Bank is a banking company governed by the Banking Regulation Act, 1949, and as such, the provisions in the Companies Act, 2013 relating to acceptance of Public Deposits are not applicable.
Capital Adequacy
The Bank continues to be adequately capitalized. The Capital Adequacy Ratio of the Bank, calculated under the Basel III Capital Regulations mandated by Reserve Bank of India {"the RBI"), is set out below:
Particulars
|
March 31, 2025
|
March 31, 2024
|
i) Capital Adequacy Ratio
|
16.24%
|
17.23%
|
(CRAR)
|
|
|
ii) CRAR- Common Equity
|
15.10%
|
15.82%
|
Tier 1 Capital
|
|
|
iii) CRAR- Tier 1 Capital
|
15.10%
|
1 5.82%
|
iv) CRAR- Tier 2 Capital
|
1.14%
|
1.41%
|
Credit Ratings
Instruments
|
Rating
|
Rating Agency
|
Domestic Ratings
|
Infrastructure Bond program/Tier 2 Bonds
|
aa
|
CRISIL
|
Certificates of Deposit Program/ Short Term FD Program
|
A1
|
CRISIL
|
Certificates of Deposit Program
|
A1
|
CARE
|
Senior Bonds program /Tier 2 Bonds
|
aa
|
India Ratings and Research
|
International Ratings
|
Senior Unsecured MTN Programme
|
Ba1
|
Moody's Investors Service
|
Bank's Directors
The Bank's Board comprised eleven Directors as on March 31, 2025,
i.e., eight Non-Executive, Independent Directors viz. Mr. Sunil Mehta, Part-time Chairman, Mrs. Akila Krishnakumar, Mr. Rajiv Agarwal, Mrs. Bhavna Doshi, Mr. Jayant Deshmukh, Mr. Pradeep Udhas, Mr. L. V. Prabhakar, Mr. Rakesh Bhatia; one Non-Executive, Non-Independent Director viz. Mr. Sudip Basu and Mr. Sumant Kathpalia, Managing Director & CEO and Mr. Arun Khurana, Whole¬ time Director {Executive Director).
(a) Non-Executive, Independent Directors
All Independent Directors have confirmed that they meet the criteria of independence as prescribed under Section 149 {6) and {7) of the Companies Act, 2013, and Regulation 25 of the SEBI Listing Regulations. The following Directors continue to be identified as Independent Directors as on March 31, 2025:
1. Mr. Sunil Mehta
2. Mrs. Akila Krishnakumar
3. Mr. Rajiv Agarwal
4. Mrs. Bhavna Doshi
5. Mr. Jayant Deshmukh
6. Mr. Pradeep Udhas
7. Mr. L. V. Prabhakar
8. Mr. Rakesh Bhatia
Pursuant to Regulation 25(9) of SEBI Listing Regulations, the Bank's Board of Directors have also obtained a Certificate from M/s Alwyn Jay & Co., Practicing Company Secretaries, that the aforesaid Directors meet the 'Criteria of Independence' and are independent of the Management.
The said Certificate is furnished at Annexure I and forms an integral part of this Integrated Annual Report.
(b) Woman Director
In terms of the provisions of Section 149 of the Companies Act, 2013, read with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014, and Regulation 17 of the SEBI Listing Regulations, specified companies are required to have at least one Woman Director on their Board.
Mrs. Akila Krishnakumar (DIN: 06629992), who joined the Board on August 10, 2018, is a Non-Executive, Independent Woman Director of the Bank. Mrs. Akila Krishnakumar is Chairperson of the Compensation and Nomination & Remuneration Committee, and I. T. Strategy Committee. She is also a Member of the Audit Committee of the Board, Special Committee of the Board for Monitoring and Follow-up of cases of frauds, and Oversight Committee.
Mrs. Bhavna Doshi (DIN: 00400508), who joined the Board on January 14, 2020, is a Non-Executive, Independent Woman Director of the Bank. Mrs. Bhavna Doshi is the Chairperson of the Audit Committee of the Board. She is also a Member of the Finance Committee, Stakeholders' Relationship Committee, Risk Management Committee, Special Committee of the Board for Monitoring and Follow-up of cases of frauds, and Oversight Committee.
Appointment / Re-appointment of Directors
Pursuant to the recommendation of the Compensation and Nomination & Remuneration Committee (C&NRC), the Board of Directors have appointed / re-appointed the following Directors:
• Mr. Lingam Venkata Prabhakar (DIN: 08110715): The
Board of Directors had on March 30, 2024, approved the appointment of Mr. Lingam Venkata Prabhakar as Non-Executive, Independent Director of the Bank for a period of four years, with effect from March 30, 2024, up to March 29, 2028 (both days inclusive).
The Shareholders of the Bank had, on June 12, 2024, approved the appointment of Mr. Lingam Venkata Prabhakar as Non-Executive, Independent Director, of the Bank by passing a Special Resolution through Postal Ballot. In accordance with Section 149(13) of the Companies Act, 2013, Mr. Lingam Venkata Prabhakar is not liable to retire by rotation.
• Mr. Rakesh Bhatia (DIN: 06547321): The Board of Directors had on March 30, 2024, approved the appointment of Mr. Rakesh Bhatia as Non-Executive, Independent Director of the Bank for a period of four years, with effect from March 30, 2024, up to March 29, 2028 (both days inclusive).
The Shareholders of the Bank had, on June 12, 2024, approved the appointment of Mr. Rakesh Bhatia as Non- Executive, Independent Director of the Bank by passing a Special Resolution through Postal Ballot. In accordance with Section 149(13) of the Companies Act, 2013, Mr. Rakesh Bhatia is not liable to retire by rotation.
• Mr. Sudip Basu (DIN: 09743986): The Board of Directors had on May 30, 2024, approved the appointment of Mr. Sudip Basu as Non-Executive, Non¬ independent Director of the Bank for a period of four years, with effect from May 30, 2024, up to May 29, 2028 (both days inclusive).
The Shareholders of the Bank had, on July 4, 2024, approved the appointment of Mr. Sudip Basu as Non¬ Executive, Non-independent Director of the Bank by passing a Ordinary Resolution through Postal Ballot. Mr. Sudip Basu being a Non- Executive, Non¬ independent Director, is liable to retire by rotation.
• Mr. Sumant Kathpalia (DIN: 01054434): The Board of Directors of the Bank had, at their meeting held on September 27, 2024, approved the re-appointment of Mr. Sumant Kathpalia as Managing Director & CEO of the Bank with effect from March 24, 2025, subject to approval of Reserve Bank of India and the Shareholders of the Bank.
Reserve Bank of India had, vide letter dated March 6, 2025, approved the re-appointment of Mr. Sumant Kathpalia as the Managing Director & CEO of the Bank for a further period of 1 year, with effect from March 24, 2025 up to March 23, 2026 (both days inclusive).
Mr. Sumant Kathpalia, Managing Director & CEO, Key Managerial Personnel of the Bank, vide his letter dated April 29, 2025, resigned from services of the Bank with effect from close of working hours on April 29, 2025.
Retirement by Rotation
Mr. Sudip Basu (DIN: 09743986): In compliance with Section 152 of the Companies Act, 2013, Mr. Sudip Basu, Non¬ Executive, Non-Independent Director of the Bank is liable to retire by rotation at the 31st Annual General Meeting of the Bank and being eligible, offers himself for re-appointment.
A Resolution seeking approval of the Shareholders for Mr. Sudip Basu's re-appointment, forms part of the Notice convening the 31st Annual General Meeting. A brief Resume of Mr. Sudip Basu is furnished in the Report on Corporate Governance for information of the Shareholders.
As required under Regulation 36(3) of the SEBI Listing Regulations, particulars of the Directors seeking appointment/re-appointment, as aforesaid are given in the Annexure to the Statement attached to the Notice convening the 31st Annual General Meeting, which forms part of the Integrated Annual Report.
Pursuant to the provisions of Section 164 of the Companies Act, 2013, none of the Directors have been disqualified from being appointed as 'Director' of the Bank.
Certificate of Non-Disqualification of Directors
In terms of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, the Bank has obtained a Certificate from M/s Alwyn Jay & Co., Practicing Company Secretaries, confirming that none of the Directors on the Board of the Bank have been debarred or disqualified from being appointed or continuing as Directors of the companies, either by the SEBI or the MCA or any other statutory/ regulatory authorities. The said Certificate is attached as Annexure II to this Integrated Annual Report.
Statement regarding Opinion of the Board with regard to Integrity, Expertise and Experience of the Independent Directors appointed during the year under review:
The Independent Directors appointed/re-appointed during the year under review were subject to due-diligence by the Compensation and Nomination & Remuneration Committee, based on parameters of qualification, expertise, track record, integrity and such other parameters as stipulated under extant norms prescribed by the RBI.
Based on the recommendations of the Compensation and Nomination & Remuneration Committee, the Board of Directors, after conducting their own assessment, were of the opinion that the Independent Directors appointed / re-appointed during the year under review, possess the necessary integrity, expertise and experience, and that their appointment / re-appointment, is in the interest of the Bank.
Cessation of Directors during the year under review Dr. T. T. Ram Mohan (DIN: 00008651): ceased to be Director of the Bank with effect from close of business hours on May 11, 2024, on completion of his tenure.
The Board places on record its sincere appreciation for the contribution made by Dr. T. T. Ram Mohan during his tenure on the Board.
Cessation of Directors after the end of the year under review and upto the date of this Report
Following Directors demitted the office after the end of the financial year 2024- 2025, and up to the date of this Report.
• Mr. Sumant Kathpalia (DIN: 01054434): Mr. Sumant Kathpalia, Managing Director & CEO, Key Managerial Personnel of the Bank, vide his letter dated April 29, 2025, resigned from services of the Bank with effect from close of working hours on April 29, 2025.
• Mr. Arun Khurana (DIN: 00075189): Mr. Arun Khurana, Whole-time Director (Executive Director), Key Managerial Personnel of the Bank, vide his letter dated April 28, 2025, resigned from services of the Bank with effect from close of working hours on April 28, 2025.
• Mr. Jayant Deshmukh (DIN:08697679): Mr. Jayant Deshmukh Ceases to be the Director of the Bank with effect from close of working hours on July 23, 2025, upon completion of his tenure.
The Board places on record its sincere appreciation for the contribution made by Mr. Jayant Deshmukh during his tenure on the Board.
Board and Committee Meetings
During the year under review, 31 meetings of the Board of Directors were held.
Details of composition of the Board and of all its Committees, Meetings held, and Attendance of the Directors at such Meetings, are provided in the Corporate Governance Report, which forms part of the Integrated Annual Report.
The intervening gap between the meetings of the Board and Committees, was within the period as prescribed under the provisions of the Companies Act, 2013 and the SEBI Listing Regulations.
Performance Evaluation of the Board
Pursuant to the provisions of the Companies Act, 2013 and the SEBI Listing Regulations, the Compensation and Nomination & Remuneration Committee of the Board had laid down the criteria for Performance Evaluation of the Board as a whole, Individual Directors including Independent Directors, Non-Independent Directors, the Chairman and the Committees of the Board, as well as the process for such evaluation.
The Bank has aligned its Board Evaluation Framework in line with the Guidance Note on Board Evaluation issued by the SEBI as per Circular dated January 5, 2017.
The Bank has engaged an external Independent Professional Agency for conducting the Performance Evaluation exercise.
The Board of Directors has carried out the annual evaluation of the performance of the Board as a whole, Individual Directors including Independent Directors, Non-Independent Directors, the Chairman and the Committees of the Board. The performance of the Board as a whole, Individual Directors including Independent Directors, Non-Independent Director, the Chairman and the Committees of the Board have been evaluated /reviewed by the Compensation and Nomination & Remuneration Committee, by the Independent Directors and by the Board of Directors.
The Board has formulated a Policy on Performance Evaluation which details the various aspects that are to be considered for evaluating the performance of the Board, including but not limited to attendance, participation in the meetings, contribution towards strategies of the Board, etc.
The Policy on Performance Evaluation provides a guideline for the individual Directors to evaluate the Board, its Committees and individual directors.
The Policy on Performance Evaluation is available on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
The Statement indicating the manner in which the evaluation exercise was conducted is included in the Corporate Governance Report, which forms part of this Integrated Annual Report.
Policy for Selection and Appointment of Directors
The Board of Directors are at the helm of the Bank and an enlightened Board creates a culture of leadership and provides a long-term policy approach to improve the quality of governance.
The Policy for Selection and Appointment of Directors has been formulated and adopted by the Bank in terms of Section 178 of the Companies Act, 2013, the relevant provisions of the SEBI Listing Regulations, Section 10A of the Banking Regulation Act, 1949 and the Guidelines issued by the RBI, in this regard, from time to time.
The Policy for Selection and Appointment of Directors shall act as a guideline for the Compensation and Nomination & Remuneration Committee for determining the qualifications, positive attributes, independence of Directors and matters related thereto, to recommend appointment and removal of Directors on the Board of the Bank.
The Policy for Selection and Appointment of Directors has been hosted on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
Familiarization Programs for Independent Directors
Various programs were undertaken for familiarizing the Independent Directors of the Bank, details of which are disclosed in the Corporate Governance Report, which forms part of the Integrated Annual Report.
Change in Key Managerial Personnel
The following were the changes in the Key Managerial Personnel of the Bank:
• Mr. Sumant Kathpalia: Mr. Sumant Kathpalia, Managing Director & CEO, Key Managerial Personnel of the Bank resigned from services of the Bank with effect from close of working hours on April 29, 2025
• Mr. Gobind Jain: Mr. Gobind Jain, Chief Financial Officer (CFO) and Key Managerial Personnel of the Bank, vide his letter email dated January 17, 2025 resigned from the services of the Bank with effect from close of working hours on Monday, January 20, 2025.
• Mr. Arun Khurana: Mr. Arun Khurana - Whole-time Director (Executive Director) & Deputy CEO and Key Managerial Personnel of the Bank had taken additional charge as Chief Financial Officer of the Bank with effect from Tuesday, January 21, 2025, in addition to his existing role and responsibilities.
The Bank relieved Mr. Khurana from this additional responsibility, with effect from close of business hours on April 17, 2025.
Mr. Arun Khurana -Whole-time Director (Executive Director), Key Managerial Personnel of the Bank, resigned from services of the Bank with effect from close of working hours on April 28, 2025.
• Mr. Santosh Kumar: Mr. Santosh Kumar, Chief Accountant was elevated as Deputy Chief Financial Officer and Special Officer - Finance & Accounts and designated as a 'Key Managerial Personnel' of the Bank, with effect from Friday, April 18, 2025.
System for Internal Financial Controls and its Adequacy
The Bank operates in a computerized environment with a Core Banking Solution system, supported by diverse application platforms for handling specific businesses areas such as Treasury, Trade Finance, Credit Cards, Retail Loans, etc.
The process of recording of transactions in each of the application platforms is subject to various forms of controls such as, in-built system checks, maker - checker authorizations, independent post¬ transaction reviews, etc.
Financial statements are prepared based on computer system outputs. The responsibility of preparation of Financial Statements is entrusted to a dedicated unit which is completely independent. This unit does not originate accounting entries except for limited matters such as, share capital, taxes, transfers to reserves and period end closing entries.
On the basis of the investigation carried out by internal/external agencies of significant matters stated in note 18.17 of the standalone financial statements, override of controls by erstwhile Key Managerial Personnel and senior bank personnel was observed, which led to identification of several deficiencies in the internal controls with reference to maintenance of books of account and preparation of the
financial statements. Basis above, the joint statutory auditors have given an adverse opinion on Internal Financial Controls with respect to financial statements. The joint statutory auditors have performed audit test considering the reported weaknesses and basis the tests performed have opined in their audit report that this has no impact on the true and fair view of the Standalone Financial Statement for the year ended March 31, 2025.
The Board of Directors has taken necessary steps in addressing the areas of concerns raised in the various external/internal reports. To further strengthen the internal control environment, the Board of Directors of the Bank has set up a project management office to ensure that necessary steps including strengthening of policy and procedures, preparation and approval of accounting entries & analysis, control and discipline over reconciliation, minimizing manual accounting entries, automated process to enhance the design and operating effectiveness controls and report to the Board on an ongoing basis. The Board of Directors has also taken steps to fix the staff accountability.
Conservation of Energy and Technology Absorption and Foreign Exchange Earnings and Outgo
The information on conservation of energy and technology absorption pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8 (3) of the Companies (Accounts) Rules, 2014, is mentioned below.
Conservation of Energy:
Considering the nature of its activities as an entity in the Financial Services sector, the Bank has voluntarily taken steps towards conservation of energy, details of which are furnished in Principle 6 of the Business Responsibility and Sustainability Report which has been hosted on the Bank's website at: https://www.indusind.com/in/en/sustainability/esg-ratings- andreporting.html
Technology Absorption:
The Bank has made optimum use of Information Technology in its operations. Details pertaining to Technology Absorption have been explained in the Management Discussion and Analysis Report which forms an integral part of the Integrated Annual Report.
Foreign Exchange Earnings and Outgo:
The provisions relating to 134 (3) (m) of the Companies Act, 2013, on particulars relating to Foreign Exchange Earnings and Outgo are not applicable to a banking company and as such, no disclosure is being made in this regard.
Risk Management
The Bank has an Enterprise-wide Risk Management (ERM) framework in place. The integrated Risk Management Department covers, Credit Risk, Market Risk, Assets-Liabilities Management (ALM) and Operational Risk across all verticals, independent of business functions.
Risk Management functions in the Bank have been aligned with best industry practices, supported by advanced risk measurement and analytical systems which enable proactive risk management and monitoring. Risk Management is continually enhanced in line with changes in operating environment and regulations.
The Bank has a comprehensive framework of Risk Management Policies which specify the risk appetite, risk measurement methodologies, and monitoring and control measures for the respective business segments. The policies have been designed keeping risk appetite as the central objective, and business strategies have been aligned to risk policies.
The Bank has set up a Board-level Committee, viz., 'Risk Management Committee' to examine risk policies and procedures developed by the Bank and monitor adherence to risk parameters and prudential limits set for different portfolios / products /segments.
Details of Risk Management Models and Frameworks implemented by the Bank are mentioned under 'Management Discussion and Analysis', which forms part of Integrated Annual Report.
Vigil Mechanism / Whistle Blower Policy
The Bank has in place the 'Whistle Blower Policy'. The Policy is in compliance with the RBI Guidelines, provisions of the Companies Act, 2013, and the SEBI Listing Regulations. The Vigil Mechanism at the Bank requires submission of Quarterly Reviews before the Audit Committee of the Board and placing of Annual Reviews before the Audit Committee and the Board of Directors. The Policy also incorporates suggestions of the Protected Disclosure Scheme for Private Sector and Foreign Banks, instituted by the RBI.
The Board of Directors of the Bank have constituted a Board level Committee, viz., the Vigilance Committee, which conducts overview of cases of vigilance nature arising out of actions of the employees of the Bank and review of vigilance activities. The Committee meets at least thrice a year.
The Bank's Whistle Blower Policy is in sync with all statutory and regulatory guidelines.
Further details about the Vigil Mechanism are furnished in the Report on Corporate Governance and the Whistle Blower Policy of the Bank has been hosted on the Bank's website at:
https://www.indusind.com/content/dam/indusind-corporate/
investor-resource/PoliciesoftheBank/Whistle-Blower-Policy.pdf
Reporting of Frauds by the Auditors
The statutory auditors have reported the seven matters through Form No. ADT-4 to the Central Government for the financial year 2024-25 pursuant to the requirement as per Section 143(12) of the Companies Act, 2013 read with Rule 13(1) to (4) of the Companies (Audit and Auditors Rules), 2014 and Circular No. NF-25013/2/2023 dated June 26, 2023 issued by the National Financial Reporting Authority, for which the Bank has also filed Fraud Monitoring Return (FMR) with the RBI.
1. The three matters are referred in the note 18 (17.1) to 18 (17.3) of the standalone financial statements for the year ended March 31, 2025 and basis the statutory auditors judgement, they have reasons to believe that suspected offences involving fraud may have been committed by certain senior officials of the Bank; and
2. Other four matters pertain to Misappropriation and Criminal Breach of Trust, Cheating and Forgery as mentioned in the FMR.
Statutory Auditors
M/s M S K A & Associates, Chartered Accountants (ICAI Firm Registration Number 105047W) and M/s Chokshi & Chokshi LLP, Chartered Accountants (ICAI Firm Registration Number 101872W/ W100045), were the Joint Statutory Auditors of the Bank for the financial year ended March 31, 2025.
As per the RBI guidelines issued on April 27, 2021, a Statutory Auditor can conduct audit of Scheduled Commercial Bank for a maximum period of three years at a time. Statutory Auditor would not be eligible for re-appointment in the same Entity for six years (two tenures) after completion of full or part of one term of the audit tenure.
Members may note that the appointment of M/s M S K A & Associates, Chartered Accountants (ICAI Firm Registration Number 105047W), was approved by the Members at the 28th Annual General Meeting of the Bank held on August 19, 2022, for a period of three consecutive years, i.e., until the conclusion of the 31st Annual General Meeting, subject to approval from the RBI on an annual basis.
Since M/s M S K A & Associates, Chartered Accountants, has completed their tenure of three years and their appointment is valid up to the conclusion of the 31st Annual General Meeting, the Bank hereby proposes to appoint M/s Borkar & Muzumdar (ICAI Firm Registration Number 101569W) as one of the Joint Statutory Auditors of the Bank for period of three years, commencing from conclusion of 31st Annual General Meeting until the conclusion of 34th Annual General Meeting, which would be held in FY 2028-29, subject to approval from the RBI on an annual basis.
Appointment of M/s Chokshi & Chokshi LLP, Chartered Accountants (ICAI Firm Registration Number 101872W/W100045) was approved by the Members at the 30th Annual General Meeting of the Bank held on August 27, 2024, for a period of three consecutive years, i.e., until the conclusion of the 33rd Annual General Meeting, which would be held in FY 2027-28, subject to approval from the Reserve Bank of India on an annual basis.
M/s Chokshi & Chokshi LLP, Chartered Accountants (ICAI Firm Registration Number 101872W/W100045) are proposed to be re¬ appointed as one of the Joint Statutory Auditors of the Bank for FY 2025-26, being their second year of appointment.
Independent Auditors' Report
M/s M S K A & Associates and M/s Chokshi & Chokshi LLP, Joint Statutory Auditors of the Bank, have audited the accounts of the Bank for the financial year 2024-25 and their Report is enclosed and forms part of the Integrated Annual Report.
The Joint Statutory Auditors have given unmodified opinion on financial statements, with the below emphasis of matters and pursuant to Section 143(3)(i) of the Companies Act, 2013, an adverse opinion was reported with respect to the adequacy and operating effectiveness of internal financial controls with respect to Financial Statements (refer 'Annexure A' to the Independent Auditors' Report).
The Joint Statutory Auditors have emphasised following key matters in their opinion:
1. Internal Trades Derivative Accounting under the head 'Other Assets' amounting to ? 1,959.98 crores being accumulated notional profits since FY 2015-16 have been written off as a prior period item in the current financial year.
2. Certain incorrect Manual Entries posted in the 'Other Assets' and 'Other Liabilities' pertaining to prior years amounting to ?595 crores has been set off during the current financial year.
3. Incorrect accounting and subsequent reversal of cumulative interest income of ? 673.82 crore and Fee Income of ? 172.58 crores within the current financial year.
Management response: The Board has taken necessary steps to ensure that the Bank has given necessary accounting effect for the discrepancies identified to ensure that the Financial Statements as on March 31, 2025, gives true and fair view. This has been detailed in the "Notes to Account" para 18 (17.1), 18(17.2) and 18(17.3). The Board has also taken necessary steps to strengthen the adequacy & effectiveness of internal control.
Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Bank had appointed M/s Alwyn Jay & Co., Company Secretaries in Practice, to undertake Secretarial Audit of the Bank for the FY 2024-25.
The Secretarial Audit Report submitted by M/s Alwyn Jay & Co. is furnished at Annexure III and forms an integral part of this Integrated Annual Report. There were no qualifications, reservations, adverse remarks or disclaimers made by the Secretarial Auditor in their report.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and Rules made thereunder and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) 2015, the Bank has appointed M/s. Alwyn Jay & Co., Company Secretaries, Peer Reviewed Company Secretaries (Firm Registration No. P2010MH021500 and Peer Review Certificate No. 5936/2024) as Secretarial Auditors of the Bank for conducting Secretarial Audit of the Bank for term of five consecutive years from Financial Year 2025-2026 up to Financial Year 2029 - 2030, subject to approval of Shareholders of the Bank.
Employees Stock Option Scheme
The Bank had instituted the Employee Stock Option Scheme (ESOS- 2020) to enable its employees, including Whole-time Directors, to participate in the capital appreciation and future growth of the Bank.
Under the Scheme, Options can be granted, which upon exercise could give rise to the issuance of a number of shares up to 7% of the aggregate number of paid-up equity shares of the Bank from time to time. The eligibility and number of Options to be granted to an employee is determined on the basis of criteria laid down in the Scheme and is approved by the Compensation and Nomination & Remuneration Committee of the Board of Directors.
An aggregate of 5,49,67,313 Options, comprising approx. 7% of the Bank's paid-up Equity Capital, have been granted under the Scheme. Statutory disclosures as required under Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 are given at Annexure IV, and form an integral part of this Integrated Annual Report.
The Annual Certificate on compliance with the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021 issued by the Secretarial Auditor of the Bank shall be placed before the Members at the ensuing Annual General Meeting of the Bank.
The Employees Stock Option Scheme is administered by the Compensation and Nomination & Remuneration Committee of the Board.
Statutory disclosures as mandated under Regulation 14 of the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021, have been hosted on the website of the Bank at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
Compliance with Secretarial Standards
The Bank has complied with the provisions of the applicable Secretarial Standards issued by the Institute of Company Secretaries of India and has put in place systems which are adequate and are operating effectively.
Maintenance of Cost Records
Being a banking company, the Bank is not required to maintain cost records as per sub- section {1} of Section 148 of the Companies Act, 2013.
Proceedings under Insolvency and Bankruptcy Code
Details of application made or any proceedings pending under the insolvency and Bankruptcy Code, 2016 {31 of 2016} during the year under review, along with their status as at the end of the financial year:
PAN No
|
Name of borrower
|
Date of filing the case to NCLT
|
Date when NCLT admitted the case
|
Is the case filed under RBI direction?
|
Resolution status (RP / Liquidation / Delay / Yet to be Admitted)
|
Remarks
|
AAACC1921B
|
Cox & Kings Ltd{Borrower}
Cox and Kings Global Services Pvt Ltd. {Corporate Guarantor
|
29-06-2020
|
05-01-2023
|
No
|
Liquidation
|
In the matter of COX & Kings Limited {borrower}, we have filed application u/s 7 of IBC against the Corporate Guarantor- Cox & Kings Global Services Ltd for Principal Liability of Borrower. Presently, company is under liquidation as no resolution plan was received.
|
AAACW6349M
|
SITI NETWORKS LIMITED
|
30-04-2022
|
22-02-2023
|
No
|
RP
|
The Bank has filed section 7 application against the borrower SITI Networks Ltd and claimed full dues. The application has been admitted and CIRP process is going on.
|
AACCH3475M
|
Hacienda Projects Pvt. Ltd.
|
05-05-2022
|
11-11-2022
|
No
|
RP
|
The Bank has filed section 7 application against the borrower Hacienda Projects Pvt Ltd and has been admitted under CIRP as on 11.11.2022. However, borrower has challenged the same before NCLAT and currently there is stay. We are pursuing the matter.
|
AADCC5681P
|
Cloud 9 Projects Pvt. Ltd.
|
05-05-2022
|
|
No
|
Yet to be admitted
|
The Bank has filed section 7 application against the borrower Cloud 9 Projects Pvt Ltd and claimed full dues. The case is yet to be admitted and is under litigation.
|
AADCT5306Q
|
Fidere Facilities Management Pvt. Ltd
|
16-02-2023
|
05-10-2023
|
No
|
Liquidation
|
The Bank has filed section 7 application against the borrower and claimed full dues. Presently, company is under liquidation as no resolution plan was received.
|
AAICS6204K
|
Siddhi Agro Foods Pvt Ltd.
|
29-03-2023
|
03-04-2024
|
No
|
RP
|
IndusInd Bank Ltd. filed an application under Section 7 of the IBC, 2016 against the borrower and same has been admitted. The Committee of Creditors have approved the resolution plan which is under implementation. Bank is expected to realise an amount of ?8.46 crore as per resolution plan.
|
AAECG1970A
|
GRAND AUTO udhog p LTD.
|
29-04-2023
|
06-03-2024
|
No
|
Liquidation
|
The Bank has filed section 7 application against the borrower and claimed full dues. Presently, company is under liquidation as no resolution plan has been received.
|
AACCF0799E
|
Feedback Energy Distribution Company Limited
|
26-06-2023
|
12-12-2023
|
No
|
RP
|
The bank has filed sanction 7 application against the borrower Feedback Energy Distribution Company Limited which has been admitted and claimed full dues.
The company is under CIRP process which is going on.
|
AAECV0177C
|
Vamsee Teja Modern Rice Mill Pvt Ltd
|
03-07-2023
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission.
|
AAACE6918J
|
Mcleod Russel India Ltd
|
13-07-2023
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission.
|
PAN No
|
Name of borrower
|
Date of filing the case to NCLT
|
Date when NCLT admitted the case
|
Is the case filed under RBI direction?
|
Resolution status(RP / Liquidation / Delay / Yet to be Admitted)
|
Remarks
|
AACCK7334A
|
KKSPUN India Limited
|
06-04-2024
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission.
|
AAFCN5811N
|
Nice Texcot Trading & Agency Private Limited (Borrower) Precision Realty Developers Private Limited (Corporate Guarantor)
|
23-08-2023
|
20-10-2023
|
No
|
RP
|
Section 7 application was filed against Precision Realty Developers pvt. Ltd, Corporate Guarantor and mortgager to borrower. The case has been admitted on application filed by another creditor. We have filed proof of claim which has been admitted. The CIRP process is going on.
|
AARCS5614A
|
Syska Led Lights Pvt. Ltd
|
18.07.2024
|
08.10.2024
|
No
|
RP
|
The Bank has filed section 7 application against the borrower and claimed full dues. The case has been admitted under CIRP in an application filed by another creditor. We have filed our proof of claim which has been admitted.
|
AAKCS1764Q
|
Shorewala Paper Industries Pvt Ltd
|
19.07.2024
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission
|
AADCS9339J
|
Shorewala Roller Flour Mills Pvt Ltd
|
19.07.2024
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission
|
AAECS0765R
|
Simplex
Infrastructures
Limited
|
17.12.2024
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission
|
AAJCS6432Q
|
Supermak Foils Pvt Ltd
|
20.01.2025
|
|
No
|
Yet to be admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission
|
AABCP2118E
|
PEGASUS FARMACO (INDIA) PRIVATE
limited
|
01-12-2024
|
|
No
|
Yet to be Admitted
|
The bank has filed Section 7 application against the borrower which is pending for admission
|
Directors' Responsibility Statement
To the best of their knowledge and belief and according to the information and explanations obtained by them, the Directors make the following statement in terms of Section 134(3)(c) and 134 (5) of the Companies Act, 2013:
(a) that in the preparation of the Annual Accounts for the year ended March 31, 2025, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
(b) that such accounting policies as mentioned in the Notes to the Financial Statements have been selected and applied consistently and that judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank as at March 31, 2025, and of the profit of the Bank for the year ended on that date;
(c) that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Bank and for preventing and detecting frauds and other irregularities;
(d) that the Annual Financial Statements have been prepared on a 'going concern' basis;
(e) that proper internal financial controls were in place and that the financial controls were adequate and operating effectively, except for the matter mentioned in section 'System for Internal Financial Controls and its Adequacy' above; and
(f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.
Annual Return
Pursuant to Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013, the Annual Return of the Bank as on March 31, 2025, in the prescribed Form MGT-7 is available on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
Particulars of Employees
The Bank had 44,974 employees on its rolls as on March 31, 2025.
122 employees employed throughout the year were in receipt of remuneration of ?1.02 crores per annum or more, and 33 employees employed for the part of the FY 2024-25 were in receipt of remuneration of ?8.50 lakh per month or more.
The information containing particulars of employees pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 forms part of this Report. However, the above details are not being sent along with this Annual Report to the Members of the Bank in line with the provision of Section 136 of the Companies Act, 2013. Members who are interested in obtaining the details may please send an email to the Secretarial Team at investor@indusind.com.
None of the employees hold (by himself or along with his spouse and dependent children) more than two percent of the Equity Share Capital of the Bank.
Details pursuant to remuneration of Directors and Employees in terms of Section 197 (12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 including the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016, are given at Annexure V which forms an integral part of this Integrated Annual Report.
Policy on Remuneration to Non-Executive Directors
The Bank has formulated and adopted a Policy on Remuneration to Non-Executive Directors of the Bank in accordance with the RBI's circulars on 'Corporate Governance in Banks - Appointment of Directors and Constitution of Committees of the Board' (dated April 26, 2021) and 'Review of Fixed Remuneration granted to Non-Executive Directors (NEDs) (dated February 9, 2024).
All Non-Executive, Independent Directors of the Bank were paid Fixed Remuneration and Sitting Fees for attending Board and Committee meetings during the year under review.
The annual remuneration payable to a single Non-Executive Director of the Bank did not exceed 50% of the total annual remuneration payable to all Non-Executive Directors.
No Stock Options were granted to the Non-Executive Directors. The 'Policy on Remuneration to Non-Executive Directors' is hosted on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html#policies-and-codes
Details of remuneration paid to the Non-Executive, Independent Directors, the Managing Director & CEO and Whole-time Director (Executive Director) of the Bank, are given under the Corporate Governance Report, which forms part of the Integrated Annual Report.
Particulars of Loans, Guarantees or Investments outstanding
Pursuant to Section 186(11) of the Companies Act, 2013, loans made, guarantees given, securities provided or acquisition of securities by a banking company in the ordinary course of its business are exempted from the disclosure requirement under Section 134(3)(g) of the Companies Act, 2013.
Particulars of Contracts or Arrangements with Related Parties
All transactions entered with 'Related Parties' during the year under review were conducted on an 'arm's length basis' and in the 'ordinary course of business' of the Bank, and therefore does not attract the provisions of Section 188 of the Companies Act, 2013.
Further, there are no materially significant Related Party Transactions entered by the Bank during the year under review, with any of its Related Parties, viz., Promoters, Directors, Key Management Personnel, Subsidiary and other related entities including IMFS, an Associate Company, which may have potential conflict with the interest of the Bank at large.
In view of the above, the disclosure under Form AOC-2 is not applicable to the Bank.
The Policy on Related Party Transactions as approved by the Board of Directors has been hosted on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/ investor-resources.html>>Policies&Codes>>RelatedParty Transaction Policy
Consolidated Financial Statements
In accordance with Section 129 (3) of the Act, Consolidated Financial Statements of IndusInd Bank Limited ('the Bank'), Bharat Financial Inclusion Limited (formerly known as IndusInd Financial Inclusion Limited) ("BFIL") ("the Subsidiary") and IndusInd Marketing and Financial Services Private Limited ("IMFS") ("the Associate") has been prepared and is included in the Integrated Annual Report.
In accordance with Section 136(1) of the Companies Act, 2013, the Integrated Annual Report of the Bank, containing therein its Standalone Financial Statements and the Consolidated Financial Statements and all other documents required to be attached thereto has also been hosted on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
Further, the Audited Annual Accounts of the Subsidiary of the Bank has been hosted on the Bank's website at:
https://www.indusind.com/in/en/investors/investor-landing/
investor-resources.html
In the preparation of the Consolidated Financial Statements, the Standalone Financial Statements of BFIL, the wholly-owned subsidiary for the year ended March 31,2025, have been considered on a line by line basis by adding together like items of assets, liabilities, income and expenses, in accordance with AS 21.
In accordance with AS 23, the Standalone Financial Statements of IMFS, an associate in which the Bank has a 30% stake, has been considered in the Consolidated Financial Statements by adopting 'Equity Method'.
Indian Accounting Standards (Ind AS)
The RBI issued a circular in February 2016, requiring Scheduled Commercial Banks to implement Indian Accounting Standards (Ind AS) from April 1, 2018. Vide a press release dated April 5, 2018 the implementation was deferred by one year. The legislative amendments recommended by the Reserve Bank towards implementation of Ind AS are still under consideration of the Government of India. Accordingly, the RBI had, through a notification dated March 22, 2019, deferred the Ind AS implementation until further notice.
Pursuant to the RBI Circular dated February 11, 2016, the Bank formed a Steering Committee, comprising members from cross¬ functional areas, for the purpose of reviewing and monitoring the progress of implementation. The Bank had set up a Working Group under the guidance of the Steering Committee and has conducted Gap Assessment and identified the differences between the current accounting framework and Ind AS, including the identification of the accounting policy options provided under Ind AS 101, First Time Adoption.
The Audit Committee of the Board of Directors has an oversight on the progress of the Ind AS implementation. In accordance with RBI directions, the Bank has been submitting half yearly standalone pro forma Ind- AS financial statements along with other computations to the RBI, from time to time.
Corporate Social Responsibility and Sustainability Corporate Social Responsibility
IndusInd Bank's Corporate Social Responsibility (CSR) interventions for FY 2024-25 are strategically designed to address pressing societal challenges and advance India's Sustainable Development Goals (SDGs). Guided by its CSR philosophy Sattvam, the Bank adopts a holistic and impact-driven approach to empower communities and foster a sustainable environment. These programs are implemented across India in partnership with NGOs, community-based organizations, and government stakeholders.
The Bank's CSR initiatives are structured across two core portfolios: Flagship Program - Long-term, integrated rural development and Strategic Program - Thematic, mid- to short-term initiatives
The Holistic Rural Development (Flagship) program focusses on long-term, impactful initiatives primarily targeting rural economic development in five aspirational districts of Dharashiv (erstwhile Osmanabad, Maharashtra), Bahraich (Uttar Pradesh), Begusarai (Bihar), Baran (Rajasthan) and Virudhunagar (Tamil Nadu) aligned with Niti Aayog - Aspirational District Program (ADP). Mission of the program, aims to improve the income levels and standard of living in the selected Districts through integrated pathways of water and soil resource management, WASH innovations, farm and non-farm livelihood skill development, FPO (Farmer Producer Organizations), entrepreneurship, financial inclusion and collaborative efforts in health, education & basic infrastructure. Climate resilience and women's socio-economic development are at core of the Flagship Program. It seeks to achieve this goal by impacting economic empowerment of communities and improving efficiency in natural resource management. In 2024-25, the program successfully impacted, the lives of 7.3 lakh beneficiaries across these districts.
In conjunction, the Strategic projects comprise of short-term to mid-term projects that empower and benefit marginalised groups, vulnerable populations and weaker sections of society and build sustainable environment. These projects focused on four overarching themes: Sustainable Environment, Inclusive Sports, Education & Employability and Livelihood Enhancement through Bharat Sanjeevani (A Collaborative Project with Bharat Financial Inclusion Limited - BFIL) and have impacted more than 17.5 lakh beneficiaries.
The thematic of Sustainable Environment includes watershed management, rejuvenation of water bodies and urban afforestation and solar installation projects. The Bank is driven to support Water Stewardship, promoting management of water resources efficiently and climate resilient agricultural practices for water positivity. In
2024-25, the Bank through its interventions across the country was able to positively impact more than 75,000 beneficiaries by restoring 12,725 hectares' area and creating storage capacity of 16.69 lakh cubic meters. More than 21.03 lakh litres of safe drinking water were also dispensed, ensuring better health and hygiene of beneficiaries.
Bharat Sanjeevani programs are aimed at livelihood enhancement of small and marginal farmers whose primary source of income is from livestock. The program provides veterinary care services including artificial insemination, vaccination, deworming and a toll-free number for emergencies. The program was expanded to 10 States and and further pivoted to align with the Government's flagship program of Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs) with MOU with Ministry of Agriculture & Farmer Welfare and Ministry of Rural Development (NRLM) to strengthen the Pashu-Sakhi program under the DAY- NRLM respectively.
As part of Inclusive Sports, programs such as 'IndusInd Cricket for the Blind' and 'Para Champions' for athletes with special abilities are helping the Bank support talent to perform at international arenas. Other programs have been designed for underprivileged, and initiatives promoting women's participation in sports like wrestling, athletics, table tennis and squash. In August 2024, our Bank supported Para Champions made us proud by performing exceptionally at the Paris 2024 Paralympics and bringing 5 medals to our country. Two of our Para Champions - Dharambir Nain and Rakesh Kumar were awarded the Arjuna Awards by the Government of India. Our bank supported wrestler, Chirag Chikkara become the 3rd Indian to win Gold at the U23 World Wrestling Champion. Overall, 1039 sportspersons benefited from our CSR interventions.
In FY24-25, the Education and Employability portfolio was strengthened by deepening interventions across the country. The Education initiatives aimed at improving learning outcomes through FLN (Foundational Literacy and Numeracy) programs, remedial education, and providing mid-day meals. These programs impacted 1.60 lakh pre-primary and primary school students across 1110 schools and trained more than 2500 teachers. Partnerships with universities like Ashoka University, Plaksha University and Indian School of Development Management as well as Buddy4Study Foundation enabled scholarships to graduate and post graduate students impacting 1221 students to achieve their ambition of higher education. Additionally, the Bank onboarded new projects to empower rural women entrepreneurs with skill training, financial access, market linkages, and mentorship. The Bank has also designed and implemented programs for 1150 specially-abled with organizations such as Sarthak, Tamana and NAAI towards employability and skill development to compete on international platforms.
Under "Other Areas", the Bank supports select healthcare programs and also extends support to Armed Forces Veterans, Widows and their families.
As per the requirements of Section 135 of the Companies Act, 2013 and CSR Rules 2014, the Bank has a Board-level CSR & Sustainability Committee to look after the CSR initiatives. The Bank's CSR governance structure includes a dedicated CSR Committee at the Board level, and a specialized CSR Department responsible for execution and monitoring. This multi-tiered approach ensures that the CSR activities are effectively managed and aligned with the Bank's strategic objectives.
The composition of the CSR & Sustainability Committee is in accordance with Section 135 of the Companies Act, 2013.
Attendance of Directors in the CSR & Sustainability Committee is given in the Report on Corporate Governance.
The Bank also emphasizes transparency and accountability in its CSR operations. Regular monitoring, qualitative and quantitative assessments, and periodic reporting ensure that the initiatives are on track and deliver the intended impact.
The CSR Initiatives / Projects are undertaken by the Bank are in accordance with Schedule VII of the Companies Act, 2013.
The Companies, on the basis of criteria prescribed under Section 135 of the Act, are required to spend at least two per cent of their Average Net Profits made during the three immediately preceding financial years, in pursuance of their Corporate Social Responsibility Policy. Accordingly, the Bank spent ^171.86 crores against adjusted budget of ^181.34 crores, towards various CSR activities specified in Schedule VII of the Companies Act, 2013. Unspent amount of ?5.48 crores has been allocated for ongoing projects while remaining ?3.99 crores has been earmarked for Schedule VII funds and will be spent in the subsequent years.
The Report on CSR activities undertaken by the Bank during the year under review, is set out at Annexure VI and forms an integral part of this Report.
The CSR Policy, is framed basis the activities permitted under Schedule VII of the Companies Act, 2013. Details of the CSR Policy and initiatives adopted by the Bank on CSR, are available on Bank's website at:
https://www.indusind.com/in/en/csr-home/our-approach/csr-
policy.html
Sustainability
The Bank recognises that sustainable practices are vital for long-term success. Guided by the principle "Good Ecology is Good Economics," the Bank is committed to adopting business products, practices, processes, and operations that reflect this enduring belief.
The Bank embeds sustainability into every facet of its operations, supported by a robust governance structure. At the apex is the CSR and Sustainability Committee of the Board, followed by the Sustainability Council and the centralised Sustainability Unit. These bodies work in concert with various stakeholders to develop the Environmental, Social, and Governance (ESG) strategy for each department.
Strategic planning at IndusInd Bank occurs in three-year cycles, with the current cycle, Planning Cycle-6 (PC6), covering FY 2023-24 to FY 2025-26. One of the key pillars of this cycle is 'Imbibing ESG into Business.'
Our approach to sustainability emphasizes integrating ESG principles into our product offerings for both retail and corporate sectors. By identifying opportunities and developing innovative products, the Bank demonstrates its commitment to sustainability. As a responsible lender, IndusInd Bank incorporates ESG considerations into its wholesale banking Credit Approval process and offers various Sustainability linked products and solutions to its clients.
The Bank's dedication to sustainability is unwavering, ensuring that its business operations contribute positively to the environment and society while delivering economic value.
Business Responsibility and Sustainability Report (BRSR)
As per the SEBI Listing Regulations, the Business Responsibility and Sustainability Report ("BRSR") shall form part of the Directors' Report.
In accordance with the SEBI Listing Regulations, the Business Responsibility and Sustainability Report (BRSR) for FY 2024-25 is included in this Integrated Annual Report. This report details the Bank's initiatives from an environmental, social, and governance (ESG) perspective, providing insights into various ESG activities adopted by the Bank. The BRSR reflects the Bank's performance against the principles of the 'National Guidelines on Responsible Business Conduct,' enabling Members to understand our comprehensive ESG efforts.
In view of the above and in compliance with Regulation 34 (2) (f) of the SEBI Listing Regulations, the BRSR, has been hosted on the Bank's website at:
https://www.indusind.com/in/en/sustainability/esg-ratings-and-
reporting.html
Corporate Governance
The Bank believes that Corporate Governance is a reflection of its value system, encompassing its culture, its policies, and its relationships with the stakeholders. Responsible and ethical corporate conduct is integral to the way the Bank does its business.
The Bank also believes that consistent implementation of good corporate governance practices contributes towards developing and sustaining the best operating systems and processes.
Integrity, transparency and accountability are the basic tenets of Corporate Governance. The Bank acknowledges the need to uphold the integrity of every transaction it enters into, and believes that honesty in its internal conduct would be judged by its external behavior.
The Bank has adopted the industry best practices of Corporate Governance and aims to continue banking on the highest principles of governance and ethics. At IndusInd Bank, Corporate Governance is more than just adherence to the statutory and regulatory requirements. It is equally about focusing on voluntary practices that underlie the highest levels of transparency.
The Governance framework is driven by the objective of enhancing long-term stakeholder value, without compromising on Ethical Standards and Corporate Social Responsibilities.
The Bank's guiding principles are also articulated through its Code of Business Conduct and various initiatives taken to maintain transparency by communicating with the Shareholders on developments in the Bank. The Bank has also set up various sub-Committees of the Board to bring in more efficacy and transparency in the workings.
The Bank continues to focus on better, complete and timely disclosures to the Stock Exchanges for dissemination to the Stakeholders. Detailed disclosures regarding corporate governance are provided in the Corporate Governance Report, which forms part of the Integrated Annual Report.
Management Discussion and Analysis Report
The Management Discussion and Analysis Report, as prescribed under Regulation 34(2)(e) of the SEBI Listing Regulations, forms part of the Integrated Annual Report.
Significant and Material Orders Passed by Regulators or Courts or Tribunal Impacting the 'Going Concern' Status and Operations of the Bank
During FY 2024-25, there were no significant and material Orders passed by the Regulators / Courts / Tribunal that would impact the 'going concern' status of the Bank and its future operations.
Material Events that have happened after the Balance Sheet date
No material changes and commitments affecting the financial position of the Bank have occurred between the end of the financial year of the Bank to which the Financial Statements relate and the date of this Integrated Annual Report.
Awards and Accolades Q1
- Great Place to Work: IndusInd Bank was recognized as a Great Place To Work for March, 2024 to March, 2025
- IBSi Digital Banking Awards: IndusInd Bank was recognized for "Customer & Program Impact" at the Annual IBSi Digital Banking Awards
- Infosys Finacle Innovation Awards 2024: The Bank's initiatives were determined as a winner under the category of "Maximizing Customer Engagement" at the Infosys Finacle Innovation Awards 2024.
- Finnoviti Awards 2024: IndusInd Bank won an award at Banking Frontiers Finnoviti Awards 2024 for INDIE digital Bank
- Digital CX Awards 2024: IndusInd Bank was bestowed with the 'Best Use of Technology for Customer Experience in Wholesale/ Transaction Banking - Overall' at the Digital Customer Experience (Digital CX) Awards 2024.
Q2
- e4m Pitch BFSI Marketing Awards: INDIE by IndusInd Bank won The Most Effective 360-degree Marketing Campaign at the e4m Pitch BFSI Marketing Awards.
- ET BFSI Martech Silver Award 2024: INDIE won Silver Award in the BFSI category for INDIE Marketing Campaign and use of martech stack (Mo-Engage) enabling persona wise personalized communication.
- Financial Times - Asia-Pacific Climate Leaders 2024:
IndusInd Bank has been featured in the Asia-Pacific Climate Leaders 2024 list by Financial Times as one of the honorees amongst banks and financial institutions, recognized across the Asia-Pacific region.
- Euromoney Awards for Excellence 2024: The Bank was recognised as India's Best Bank for ESG at the Euromoney Awards for Excellence 2024 for the third consecutive year.
- Global Fintech Fest 2024: IndusInd Bank won the Best-in-class Payment Solution award at the Global Fintech Fest 2024
- Sports India Awards 2024: IndusInd Bank won the Sports India Award for its Outstanding CSR Contributions to High Performing Athletes.
- CSR Times Awards 2024: IndusInd Bank was honoured with the Gold Award at the CSR Times Award 2024 for Water Conservation and Management.
Q3
- E4m Maddies Awards 2024: IndusInd Bank's INDIE was recognized as The Ultimate Digital Banking Experience at the E4m Maddies Awards 2024.
- ASSOCHAM 19th Annual Summit & Awards 2024:
IndusInd Bank was recognized as a winner at the ASSOCHAM 19th Annual Summit & Awards for Banking and Financial Sector Lending Companies 2024 for
- Best ESG Performance - Large and Mid-sized Corporates.
- Best Customer Experience - Large and Mid-sized Banks.
- 51st India Gems and Jewellery Awards 2024: IndusInd Bank was recognized as Best Bank Financing the Industry at the 51st India Gems and Jewellery Awards 2024.
Q4
- 12th FICCI Water Awards 2024: IndusInd Bank won the 12th edition of FICCI Water Awards 2024 under the category of Community Initiatives for Spring Water Conservation and Management in South Odisha.
- 7th ICC Social Impact Awards 2025: IndusInd Bank was bestowed with the Runner-up award at the 7th ICC Social Impact Awards 2025 under the category of Environment Sustainability - Mega Enterprise Category for Usharmukti towards Evergreen in West Bengal - establishing ecosystem model for Eastern India.
IndusInd Bank was certified a Great Place To Work for the 3rd consecutive year by the Great Place To Work Institute for February 2025 to February 2026
Policy on Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Bank has complied with the extant provisions relating to the constitution of Internal Committees under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The disclosures relating to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, is included in the Corporate Governance Report, which forms an integral part of the Integrated Annual Report.
Compliance to the provisions relating to the Maternity Benefits Act, 1961
The Bank has ensured the compliance to the provisions pertaining to the benefits provided under The Maternity Benefit Act,1961.
Annexures
The following documents are annexed to the Directors' Report:
(i) Certificate on Declaration of Independence of Directors from Company Secretary in Practice.
(ii) Certificate from Secretarial Auditor on disqualification of directors pursuant to Regulation 34(3) of the SEBI Listing Regulations.
(iii) Secretarial Audit Report of the Bank, for the financial year ended March 31, 2025.
(iv) Statutory Disclosures regarding administration of ESOPs for the financial year ended March 31, 2025.
(v) Disclosure on remuneration pursuant to Section 197 of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
(vi) Annual Report on CSR activities undertaken by the Bank during the financial year ended March 31, 2025, in terms of Notification dated January 22, 2021, issued by the MCA.
Acknowledgements
The Directors are grateful to the Shareholders for the trust and confidence reposed by them in the Bank.
The Directors are also g rateful to the RBI, the Ministry of Corporate Affairs, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and the Stock Exchanges, for the guidance and support extended by them to the Bank.
The Board expresses its deep sense of appreciation to all employees for their excellent performance, strong work ethic, and untiring commitment, which qualities have contributed to the Bank's continued progress in a challenging environment.
The Board thanks its valued Customers for their patronage, and looks forward to the growing of this mutually supportive relationship in future.
For and on behalf of the Board of Directors
sd/-
Sunil Mehta
Place: Mumbai Chairman
Date: July 23, 2025 DIN: 00065343
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