IndusInd Bank has announced that it is taking steps to realign senior management roles and fix accountability following an independent investigation into accounting discrepancies. The investigation, commissioned on March 20, 2025, was carried out by an external professional firm, which submitted its report to the bank on April 26, 2025.
The report identified a cumulative adverse accounting impact of ₹1,959.98 crore on the profit and loss account as of March 31, 2025. The primary cause was the incorrect accounting of internal derivative trades, especially in cases of early termination, which led to the recording of notional profits.
The bank stated that the impact of the discrepancies will be reflected in its financial statements for FY 2024-25. IndusInd Bank also mentioned it would take steps to strengthen its internal controls. Internal derivative trades have been discontinued as of April 1, 2025.
Earlier, in April, the bank disclosed that the discrepancies would impact its net worth by approximately ₹1,979 crore, corresponding to around 2.27% of its net worth as of December 2024. The bank’s net worth at the end of December 2024 stood at ₹65,102 crore.
The bank has relieved Arun Khurana of his additional responsibilities as Chief Financial Officer, effective April 18, 2025. Santosh Kumar has been appointed as Deputy CFO and Special Officer of Finance and Accounts.
IndusInd Bank’s board is also in the process of shortlisting candidates for the CEO position, with the current term of Sumant Kathpalia set to end in October 2025. As per the reports, a firm will be engaged for this process.
Read more: IndusInd Bank’s ₹1,500 Crore Forex Loss: What Went Wrong?
As of 9:43 AM on April 28, 2025, IndusInd Bank share price was trading at ₹825, up 0.32%, with a 26.18% gain over the past month and a 22.26% decline over the past six months. The stock reached a 52-week high of ₹1,550 in June 2024 and a low of ₹605.40 in March 2025.
The bank has also initiated an internal audit of its microfinance portfolio. EY is assisting with this audit, but no forensic audit has been commissioned.
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Published on: Apr 28, 2025, 1:48 PM IST
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