IndusInd Bank has reported a net profit of Rs 604.00 crore in the latest quarter, marking a significant recovery from a consolidated net loss of Rs 2,329.00 crore in the March quarter. The bank has successfully resolved legacy issues in its treasury and microfinance businesses, which were linked to past irregularities in loan recognition and trading reverses.

Resolution of Legacy Issues

Chairman Sunil Mehta stated that the financial impact of these legacy issues is now behind the bank. He emphasized that enhanced oversight and controls have been implemented to prevent similar issues in the future. This development signals a positive turn for the bank's financial health and operational integrity.

New Leadership

In a significant move, the bank's board has approved the appointment of Rajiv Anand as the new Managing Director and CEO. Anand's tenure is set to begin on August 25, 2025, for a three-year term. With over 35 years of banking experience from his previous role as Deputy Managing Director at Axis Bank, Anand brings valuable expertise to IndusInd Bank's leadership.

Strategic Focus

IndusInd Bank is now focusing on sustainable growth in several key areas:

• Vehicle finance
• Retailisation
• Mid and small-sized corporates
• Granular liabilities

The bank is maintaining a cautious approach to unsecured lending, indicating a prudent risk management strategy.

Market Response

Despite the positive developments, IndusInd Bank's shares closed 0.90% lower at Rs 778.30 on Wednesday, reflecting the complex market dynamics and investor sentiment.

These developments mark a significant turning point for IndusInd Bank as it moves past its legacy issues and sets a course for sustainable growth under new leadership.

In a significant development for the Indian banking sector, Mumbai's Economic Offences Wing (EOW) has initiated a preliminary enquiry into an alleged accounting lapse at IndusInd Bank . The investigation comes following a complaint from the bank's own management, signaling a proactive approach to addressing potential financial irregularities.

Investigation Details

The EOW has already begun its investigative process, recording statements from staff members associated with the offices of IndusInd Bank's Chief Financial Officer (CFO) and Deputy CFO. This initial step suggests that the authorities are focusing on the financial department of the bank to gather relevant information about the alleged accounting discrepancies.

Key Figures to be Summoned

As part of the ongoing enquiry, the EOW is set to summon high-ranking officials of IndusInd Bank for questioning:

• Sumant Kathpalia: The Managing Director and CEO of IndusInd Bank
• Arun Khurana: A senior official at the bank

These executives are expected to be called upon to record their statements, which could provide crucial insights into the bank's financial practices and the alleged accounting lapse.

Nature of the Enquiry

It's important to note that this is currently a preliminary enquiry. The primary objective at this stage is to establish whether the matter is cognizable before proceeding to file a First Information Report (FIR). This cautious approach underscores the sensitivity of financial investigations in the banking sector.

Scope of the Investigation

As part of the investigative process, the EOW has the authority to summon the CFO and Deputy CFO for further questioning. This broad scope of inquiry suggests that the authorities are conducting a thorough examination of the bank's financial operations and decision-making processes.

Implications for IndusInd Bank

While it's too early to determine the outcome of this enquiry, the investigation could have significant implications for IndusInd Bank. The bank's proactive approach in bringing the matter to the attention of authorities may be viewed positively, demonstrating a commitment to transparency and regulatory compliance.

As the investigation unfolds, stakeholders, including investors and customers, will be closely watching for any developments that could impact the bank's operations and reputation in the highly competitive Indian banking sector.

The bank and the EOW have not provided any further details about the nature of the alleged accounting lapse or its potential impact. As the enquiry progresses, more information is expected to come to light, providing a clearer picture of the situation at IndusInd Bank.