Exposure to Indiabulls group is completely collateralised and secured, says IndusInd Bank

IndusInd Bank on Monday clarified that its exposure to Indiabulls group is completely collateralised and fully secured, after the Delhi High Court accepted a public interest litigation (PIL) filed against the latter. The PIL alleges round-tripping of funds by IHFL. IHFL had argued strongly against the issuance of notice.

“Unfortunately, I am not at liberty to divulge numbers but I can only say that a significant portion of these exposures in IndusInd Bank at least is also relating to the commercial real estate side of the business, which is under-transition to Blackstone. The company has announced the sale of their commercial real estate business to Blackstone and a large part of it is getting moved into that as well,” said Rupa Satish, head-Corporate and Investments at IndusInd Bank.

She added that, in fact, the bank does not have any large unsecured exposures to any entities. “Everything is secured. We do not give specific amounts for a specific company. I can only say that every rupee that we have given to the Indiabulls group is secured. It is not only specific to Indiabulls, but we also do not have, as a policy, large unsecured exposures within the bank. So it applies not only to Indiabulls group but also to most of our corporate exposure."