Insider Trades in Indusind Bank

The Securities and Exchange Board of India (Sebi) has barred former IndusInd Bank CEO Sumant Kathpalia and four other senior officials from trading in the securities market, following allegations of insider trading linked to a massive accounting discrepancy.

 

In an order issued on 28th May 2025, Sebi said that these individuals had traded in IndusInd Bank shares while being in possession of unpublished price sensitive information (UPSI), violating insider trading rules.

 

The other executives named in the order are Arun Khurana (former Executive Director and Deputy CEO), Sushant Sourav (Head of Treasury Operations), Rohan Jathanna (Head of GMG Operations), and Anil Marco Rao (Chief Administrative Officer – Consumer Banking Operations).

ABFRL Demerger Details

 Aditya Birla Fashion and Retail Ltd (ABFRL) has successfully demerged its Madura Fashion & Lifestyle (MFL) division into a new, separately listed entity named Aditya Birla Lifestyle Brands Ltd (ABLBL). This strategic move aims to unlock value by allowing each business to pursue tailored growth strategies and optimize capital structures.

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📊 Financial Overview (FY23)

Microfinance Stress Zooms in FY- 2025

• Delinquent Loans (PAR 31+ Days):
  📈 ₹43,075 crore – up 163% from ₹16,379 crore in FY2024.

• Gross Loan Portfolio (GLP):
  📉 Declined 13.9% to ₹3.81 lakh crore, from ₹4.43 lakh crore in FY2024.

• PAR 31–180 Days:
  ⬆️ Rose to 6.2% (from 2.1%).

• PAR >180 Days:
  ⬆️ Increased to 5.1% (from 1.6%).

• 90+ Days Past Due (DPD):
  ⬆️ More than doubled to 6.0%, from 2.4% a year earlier.

Kitchen Sink Accounting by Large Indian Banks - History

The term "kitchen sink" in the context of corporate earnings refers to a strategy where a company takes significant one-time charges, write-offs, or provisions in a single quarter to clean up its balance sheet, often to address accumulated issues and set a lower base for future performance. IndusInd Bank's Q4 FY25 results, announced on May 21, 2025, are a recent example, with a reported net loss of ₹2,328.92 crore, driven by ₹1,979 crore in derivative losses, ₹674 crore in overstated interest income, and microfinance portfolio stress.

Historical Examples of "Kitchen Sink" Accounting by Large Indian Banks

Probability - Quick Intro

 🧠 What is Probability?

Probability is the likelihood or chance that a certain event will happen.

AI-Proof Trading Strategy Checklist for Experienced Investors

While AI can excel at pattern recognition and data analysis, experienced human traders have unique advantages that can outperform AI in specific market conditions. This checklist is designed to help you identify and exploit these edge cases effectively.

Why Banks Deserve Premium Valuations Over NBFCs: A Case for IndusInd Bank vs Shriram Finance

The Indian financial sector is broadly divided into two key segments: banks and non-banking financial companies (NBFCs). While both play critical roles in credit delivery and financial intermediation, their business models, risk profiles, and income generation capacities differ significantly. These differences translate into varied valuation levels in the stock market.