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2w ago

IndusInd Bank Confirms ₹1,959.98 Crore Accounting Impact, Implements Governance Reforms

An independent investigation revealed flawed internal derivative practices as the root cause, prompting the bank to cease such activities and overhaul internal controls.

After ₹1,959.98 crore jolt, IndusInd Bank moves to fix lapses in internal controls
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Overview

  • IndusInd Bank disclosed a ₹1,959.98 crore adverse accounting impact on its profit and loss statement as of March 31, 2025, confirmed by an independent investigative report submitted on April 26.
  • The discrepancies stemmed from incorrect accounting of internal derivative trades, particularly early terminations, which led to premature recognition of notional profits.
  • The bank has discontinued all internal derivative trading activities since April 1, 2024, as part of its corrective measures.
  • The board is taking steps to address accountability, reassign senior management roles, and strengthen internal controls to prevent future lapses.
  • The financial impact will be reflected in the FY2024-25 financial statements, with additional forensic reviews underway to enhance transparency and governance.