Turmoil at IndusInd Bank: Accounting Frauds Unveiled
IndusInd Bank faces a major crisis after uncovering accounting frauds amounting to Rs 3,400 crore. The fraud involves senior management and affects derivatives and microfinance portfolios. Sebi and RBI are investigating the case, and the bank has reported significant financial losses and top-level resignations.
- Country:
- India
IndusInd Bank is embroiled in a significant financial scandal as accounting frauds estimated at Rs 3,400 crore have come to light, implicating senior management. According to SEBI Chairman Tuhin Kanta Pandey, the Securities and Exchange Board of India (Sebi) is investigating possible securities market violations by the bank's officials.
The Reserve Bank of India (RBI) will address the banking sector issues, while Sebi's focus remains on securities concerns. IndusInd Bank's board suspects employee involvement in the fraud, prompting a directive to report the matter to investigative agencies. An internal audit has revealed serious lapses in internal controls.
This revelation has led to significant financial setbacks for the bank, reporting a net loss of Rs 2,329 crore in the March quarter of FY25. Following these developments, the bank's top-level management, including the CEO, has resigned. Despite initial drops, IndusInd Bank's shares showed some resilience on Thursday, closing 1.82% higher.
(With inputs from agencies.)
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