IndusInd Bank promoters restructure pledges for refinancing

Promoters of IndusInd Bank , IndusInd International Holdings Limited and IndusInd Limited, restructured their share pledges on June 30, 2026, to refinance existing indebtedness. The transactions involved the release of shares by one promoter entity and the creation of a new pledge by another, while the aggregate promoter holding remained unchanged at 15.08% of the paid-up share capital. The restructuring was executed to optimize the security cover for lenders, maintaining a ratio of 1.31:1 against the involved amount of ₹30,600,000,000.

IndusInd International Holdings Limited released 1,12,88,989 shares, representing 1.45% of the total share capital. Following this release, the entity's encumbered holdings decreased to 1,10,00,000 shares, or 1.41% of the total share capital. Concurrently, IndusInd Limited created a pledge on 1,12,88,989 shares, which also represents 1.45% of the total share capital. As a result, IndusInd Limited's total encumbered holdings rose to 3,92,67,535 shares, accounting for 5.04% of the bank's equity.

The disclosures were submitted to the stock exchanges on July 2, 2026, pursuant to Regulation 31(1) and 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The shares were pledged in favor of Catalyst Trusteeship Limited, acting as the security agent for lenders including J.P. Morgan Securities plc, Deutsche Bank AG, Singapore Branch, Barclays Bank PLC, and Citibank N.A., London Branch.

Shareholding Details

The restructuring altered the distribution of encumbered shares within the promoter group but did not change the aggregate promoter shareholding. The total number of shares encumbered by the promoters post-transaction stands at 5,02,67,535, which constitutes 6.45% of the total share capital. The value of the shares on the date of the event was reported at ₹40,214,028,000.

Promoter Entity	Total Shares Held	% of Total Capital	Encumbered Shares	% of Encumbered Shares
IndusInd International Holdings Limited	7,82,48,475	10.04%	1,10,00,000	1.41%
IndusInd Limited	3,92,67,535	5.04%	3,92,67,535	5.04%
Total	11,75,16,010	15.08%	5,02,67,535	6.45%

The bank confirmed that the encumbered shares do not constitute 50% or more of the total promoter shareholding, nor do they represent 20% or more of the bank's total share capital. The voting rights attached to the pledged shares remain with the pledgors in accordance with the terms of the pledge agreement.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.64%	+10.31%	+12.21%	+12.21%	+17.09%	-1.05%

IndusInd Bank has detailed the tax deduction at source (TDS) implications for the final dividend of ₹1.50 per equity share for the financial year ended March 31, 2026. The dividend, recommended by the Board on April 24, 2026, is subject to shareholder approval at the Annual General Meeting scheduled for August 2026. The bank clarified that dividend income is taxable in the hands of shareholders under the Income Tax Act, 2025, necessitating TDS at the time of payment.

The record date for determining shareholder eligibility is Friday, June 26, 2026. To ensure appropriate tax deduction, eligible shareholders must submit relevant tax exemption forms by Monday, July 6, 2026. The bank emphasized that any declaration received after this deadline will not be accepted, and TDS will be deducted based on the records available with the Registrar and Transfer Agent, MUFG Intime India Private Limited.

TDS Rates for Resident Shareholders

For resident shareholders, the bank will deduct TDS under Section 393 of the Income Tax Act, 2025. The applicable rates and conditions are summarized below:

Shareholder Category	TDS Rate	Conditions
Resident Individuals	NIL	If aggregate dividend does not exceed ₹10,000 or Form 121 is submitted.
Other Residents	10%	If a valid PAN is updated with the Depository Participant.
Residents without PAN	20%	If PAN is not provided, unavailable, or inoperative.

Specific entities such as insurance companies, mutual funds, and Alternative Investment Funds (Category I and II) can claim NIL or lower TDS by submitting a self-declaration and supporting documents, including a self-attested PAN card.

TDS Rules for Non-Resident Shareholders

Non-resident shareholders, including Foreign Portfolio Investors (FPIs), are subject to a higher withholding tax rate. The standard deduction is 20% plus applicable surcharge and cess. However, shareholders may opt for benefits under the Double Tax Avoidance Agreement (DTAA) if more favorable. To avail DTAA benefits, non-residents must provide a self-attested PAN card, Tax Residency Certificate (TRC) for FY26, and Form 41 from the income tax portal.

Special provisions exist for specific categories:

Alternative Investment Fund - Category III (IFSC): 10% TDS upon submission of self-declaration and documentary evidence.
Sovereign Wealth Funds and Pension Funds (Schedule V(7)): NIL TDS subject to CBDT notification and compliance declaration.
Offshore Banking Unit (Category I FPI): 10% TDS with valid PAN and supporting documents.

The bank clarified that the application of beneficial DTAA rates depends on the satisfactory review of submitted documents. In the absence of valid documentation, the bank is obligated to deduct tax at the prescribed rates.

Compliance and Documentation

Shareholders must update their PAN, email address, and other details with their depository participants or the Registrar and Transfer Agent to avoid higher TDS deductions. The bank specified that inoperative PANs, due to non-linkage with Aadhaar, will result in tax deduction at higher rates as per the Income Tax Act.

Documents must be uploaded to the Registrar and Transfer Agent's portal before July 6, 2026. The bank reserves the right to rely on its independent assessment if information provided by shareholders is found to be contrary to declarations, potentially leading to higher tax deductions. Shareholders can claim refunds for excess tax deducted by filing their income tax returns.