Shares of IndusInd Bank Ltd rose 2% to touch a day’s high of Rs 796.70 on 22nd May. This came after the bank said yesterday that its Board suspects a fraud involving certain employees tied to accounting and financial reporting lapses, and has directed necessary legal and regulatory action.
IndusInd Bank suspects fraud involving certain employees tied to key accounting and reporting lapses, and has reported the issue to regulators and investigative agencies.
The bank plans to fix accountability for all individuals involved and take action under applicable laws.
Investigation reports by an external firm and the Internal Audit Department (IAD) revealed accounting issues with derivative trades and unverified balances in ‘other assets’ and ‘other liabilities’.
On 20th May, the IAD found that Rs 172.58 crore was wrongly recorded as fee income in the Microfinance unit, which was reversed in Q4 of FY25.
The audit findings suggest a likely involvement of senior officials and former Key Managerial Personnel (KMP) who overrode internal controls and concealed wrongdoing from the Board and auditors.
During its earnings call, the bank said CEO selection is in the final stages, with a recommendation expected to be sent to the RBI by 30th June. Chairman Sunil Mehta added that the bank is preventing such incidents and improving governance culture.
At 10:47 AM, the shares of IndusInd Bank were trading 0.39% higher at Rs 772.95 on NSE.
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