Mumbai, June 3 -- IndusInd Bank's promoter entity, IndusInd International Holdings Ltd (IIHL), is in preliminary discussions with long-term investors, including sovereign wealth funds and pension funds, to raise fresh capital by issuing new shares, according to two senior executives familiar with the matter.

The move aims to increase the Hinduja Group entity's stake in the private-sector bank, the two executives said. Notably, IndusInd Bank is currently grappling with accounting and regulatory crises, as well as falling share prices.

"IIHL has diversified holdings with nearly 583 shareholders," the first person cited above said on condition of anonymity. "None of the (current) shareholders are selling. Instead, IIHL is looking to bring ...