IndusInd Bank's Troubles Deepen: Unexplained Rs 595 Crore Entry Revealed
IndusInd Bank revealed a Rs 595 crore discrepancy in its balance sheet, discovered by its internal audit department after a whistleblower complaint. The bank is addressing lapses in internal controls and accountability of staff. Recent resignations and accounting issues have prompted a forensic audit and a negative outlook from Moody's.
- Country:
- India
IndusInd Bank announced on Thursday that its internal audit unveiled an 'unsubstantiated balance' of Rs 595 crore in its 'other assets.' This revelation was made in the wake of a whistleblower complaint about potential accounting discrepancies.
The bank's regulatory filing indicated the amount was later set off against corresponding balances in 'other liabilities' by January 2025. The internal audit department scrutinized the roles of employees involved in the transaction. The bank had already disclosed ongoing reviews of its MFI business to stock exchanges.
Amid mounting scrutiny, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned, prompting the creation of a Committee of Executives to oversee operations. In response to accounting lapses and negative assessments by Moody's, a forensic audit has been commissioned. The bank faces ongoing challenges to stabilize its financial health and management practices.
(With inputs from agencies.)
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