IndusInd Bank confirms ₹1,269 crore accounting irregularities after internal audit, shares fall  

The audit report, submitted on May 8, follows an earlier disclosure from April 22 when IndusInd Bank announced it was examining concerns related to its microfinance institution business

IndusInd Bank shares fell 2.78 per cent to ₹758.80 on Friday morning following the bank’s confirmation of accounting irregularities totalling ₹1,269 crores. In a regulatory filing on May 15, the bank disclosed that its Internal Audit Department (IAD) had identified two significant financial discrepancies.

According to the bank’s statement, ₹674 crore was incorrectly recorded as interest income across three quarters of FY 2024-25, which was subsequently reversed on January 10, 2025. Additionally, a whistleblower complaint led to the discovery of unsubstantiated balances of ₹595 crore in “other assets” accounts, which were offset against corresponding “other liabilities” in January 2025.

The audit report, submitted on May 8, follows an earlier disclosure from April 22 when the bank announced it was examining concerns related to its microfinance institution (MFI) business. The bank stated that its board is taking steps to strengthen internal controls and will hold responsible individuals accountable for these lapses.

This revelation comes at a challenging time for the banking sector, which has faced increased regulatory scrutiny over financial reporting practices. The disclosure confirms rumours that had begun circulating in financial circles about potential irregularities at the bank.

Trading sentiment remained negative as investors assessed the potential impact of these disclosures on the bank’s financial health.

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Published on May 16, 2025