Overview

• IndusInd Bank confirmed that ₹674 crore was incorrectly recorded as interest income in its microfinance business over three quarters of FY24-25, fully reversed by January 10, 2025.
• An internal audit also identified ₹595 crore of unsubstantiated balances in 'other assets,' which were offset against 'other liabilities' in January 2025 following a whistleblower complaint.
• The Reserve Bank of India has authorized a committee of senior executives to manage daily operations, while the bank's board works to strengthen internal controls and ensure accountability.
• These errors follow earlier revelations of ₹1,960 crore in derivatives accounting discrepancies, which led to the resignations of CEO Sumant Kathpalia and Deputy CEO Arun Khurana.
• IndusInd Bank's market value has dropped 45% over the past year, with brokerages lowering earnings forecasts and credit rating agencies downgrading the bank's outlook.