IndusInd Bank Shares Down 2% As Internal Audit Probes Into New Accounting Irregularities

SOURCE : NEW18 NEWS

Last Updated:May 15, 2025, 09:46 IST

IndusInd Bank Crisis: Shares of IndusInd Bank traded lower on Thursday following reports of a new accounting probe

Shares of IndusInd Bank traded lower on Thursday following reports of a new accounting probe. The Hinduja Group-controlled private lender is facing renewed scrutiny, with its internal audit department currently examining a series of past accounting reversals. According to a report by The Economic Times, these issues were initially flagged in a whistleblower letter sent to the Reserve Bank of India (RBI) and the bank’s board.

Unlike previously disclosed concerns, the latest irregularities involve entries related to “other assets” and “other liabilities,” which appear under operating expenses in the bank’s financial statements, the report said.

A whistleblower letter was reportedly submitted to IndusInd Bank’s senior management just days before the Reserve Bank of India (RBI) approved the one-year extension of CEO Sumant Kathpalia’s tenure on March 6, 2025. However, Kathpalia resigned with immediate effect on April 29, 2025, citing moral responsibility for accounting discrepancies related to the bank’s derivatives portfolio.

IndusInd Bank had disclosed these accounting lapses shortly after the RBI’s approval, estimating a potential impact of Rs 1,960 crore on its FY2025 financials. An external auditor appointed by the bank later confirmed a cumulative adverse impact of Rs 1,959.98 crore on the profit and loss statement as of March 31, 2025, closely aligning with the bank’s earlier disclosure.

As of now, IndusInd Bank has yet to release its quarterly results for the period ending March 31, 2025.

First Published:

May 15, 2025, 09:33 IST