The Mumbai Police Economic Offences Wing (EOW) has uncovered a new dimension in the ongoing IndusInd Bank case, investigating a freshly discovered ₹258 crore entry. This development comes in addition to the previously reported ₹1,950 crore accounting mismatch in the bank's derivatives portfolio.

Key Findings

• A Grant Thornton (GT) audit report covering 2015-2024 identified the ₹258 crore figure.
• The amount was allegedly used selectively to boost the bank's net interest income during quarters when results fell short of market expectations.
• The original ₹1,950 crore mismatch appears to be an accounting error, with no evidence of criminality found so far.

Investigation Details

EOW officials have provided insights into the ongoing investigation:

• The ₹1,950 crore mismatch reportedly arose from different accounting methods used by the bank's Asset-Liability Management desk and treasury desk for hedging.
• The agency plans to re-summon former executives Sumant Kathpalia, Arun Khurana, and Gobind Jain for questioning regarding the ₹258 crore entry.
• The audit report reveals that senior management was allegedly aware of accounting discrepancies by 2023 but only informed the board in March 2025.

Current Status of the Investigation

The EOW's investigation is ongoing, with a particular emphasis on determining any potential criminal aspects related to the newly discovered ₹258 crore entry. As the case unfolds, it highlights the importance of robust accounting practices and timely disclosure in the banking sector.

Investors and stakeholders of IndusInd Bank will likely be watching closely as more details emerge from this investigation.

IndusInd Bank , a major player in India's banking sector, is facing serious allegations of fraudulent accounting practices. Recent revelations suggest that the bank's former Chief Financial Officer (CFO) was aware of these questionable practices, potentially dating back to 2017 or even earlier.

Key Allegations

• Knowledge of Fraud: The ex-CFO of IndusInd Bank is alleged to have had knowledge of fraudulent accounting practices within the organization.
• Treasury Fraud: Email evidence points to the possibility that the bank's treasury fraud may have originated as early as 2017, if not before.
• Potential Long-term Issue: The allegations suggest that these practices might have been ongoing for several years, raising concerns about the bank's financial reporting and internal controls.

Implications for IndusInd Bank

These allegations, if proven true, could have significant repercussions for IndusInd Bank:

1. Regulatory Scrutiny: The bank may face increased scrutiny from regulatory bodies such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).
2. Investor Confidence: The news could potentially shake investor confidence, impacting the bank's stock performance and market reputation.
3. Internal Investigations: IndusInd Bank may need to conduct thorough internal investigations to determine the extent of the alleged fraudulent practices.
4. Governance Review: This situation might prompt a comprehensive review of the bank's corporate governance structures and internal control mechanisms.

Next Steps

As these allegations come to light, stakeholders will be closely watching for:

• Official statements from IndusInd Bank addressing these allegations
• Potential regulatory actions or investigations
• Any impact on the bank's financial statements or need for restatements
• Changes in leadership or governance structure in response to these revelations

It's important to note that at this stage, these remain allegations. The bank and relevant authorities will need to conduct thorough investigations to substantiate or refute these claims. Investors and customers of IndusInd Bank should stay informed about any official communications or developments regarding this matter.