8 hours ago
Shares of Mumbai-based private lender IndusInd Bank Ltd. are back in the news and may react during the trading session on Friday, May 16.
The latest developments are the bank's clarifications to a news report on Thursday, which spoke of further accounting irregularities at the lender.
In its clarification, sent to the exchanges on Thursday evening, IndusInd Bank said that the bank's Internal Audit Department (IAD) was conducting a review of the bank's MFI business to examine certain concerns brought to the bank's attention.
The report was submitted by the bank's IAD on May 8, 2025, and noted that a cumulative amount of ₹674 crore was incorrectly recorded as interest over three quarters of financial year 2025, which was fully reversed on January 10 this year.
After receiving a whistle blower complaint, the audit committee of IndusInd's board also asked the IAD to review transactions recorded in "other assets" and "other liabilities". In its report, the IAD stated that there were unsubstantiated balances worth ₹595 crore in "other assets" account, which was set off against corresponding balances appearing in "other liabilities" accounts in January 2025.
"The IAD has also examined the roles and actions of key employees in this context. The board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate," the lender's statement to the exchanges said.
The latest accounting discrepancies have come to the fore just two weeks after the bank's MD & CEO Sumant Kathpalia and Deputy CEO Arun Khurana had to quit following the derivatives portfolio controversy, which impacted the bank's net worth due to incorrect accounting of its internal derivatives trade.
IndusInd Bank is yet to appoint a new MD & CEO and daily operations are currently being run by a "committee of executives", with approval from the Reserve Bank of India.
Shares of IndusInd Bank have recovered nearly 30% from their 52-week low of ₹606, which they fell to when the first accounting issue came to light. The stock ended little changed on Thursday at ₹780.
