IndusInd Bank , one of India's leading private sector banks, finds itself embroiled in a controversy as the Mumbai Police's Economic Offences Wing (EOW) investigates an alleged ₹1,979 crore accounting error in the bank's derivative portfolio. The case has drawn significant attention, causing a sharp decline in the bank's stock price and raising questions about its financial practices.

Investigation Underway

The EOW recently questioned IndusInd Bank's Chief Financial Officer (CFO), Gobind Jain, regarding the substantial accounting discrepancy. Jain, who claims to be a whistle-blower in this case, has submitted supporting documents to the authorities and is scheduled to reappear for further questioning on Thursday.

The investigation has widened its scope, with the agency also summoning former executives Arun Khurana and Sumant Kathpalia for questioning. This move suggests that the EOW is looking into the roles and responsibilities of both current and past leadership in relation to the accounting error.

Impact on Stock Performance

The revelation of this accounting error, which first came to light in April, has had a significant impact on IndusInd Bank's market performance. The bank's stock plummeted by 25%, erasing ₹15,000 crore in market value. This sharp decline underscores the severity of the issue and its potential implications for investor confidence.

Timeline and Audit Findings

One of the key aspects under scrutiny is the timeline of the accounting error. Investigators are examining why the issue, which reportedly began in 2015, took nearly a decade to surface. This extended period raises questions about the bank's internal controls and financial reporting processes.

The EOW has requested the Grant Thornton audit report, which has identified lapses by 25 employees. These employees have subsequently been suspended, indicating the bank's initial response to address the situation internally.

Ongoing Inquiry

The preliminary inquiry is based on a complaint from the bank's management, suggesting that the current leadership is cooperating with the authorities to resolve the matter. As the investigation progresses, it is expected to shed light on the exact nature of the accounting error, its causes, and potential remedial measures.

Looking Ahead

While the investigation is ongoing, it's important to note that IndusInd Bank continues its operations. According to recent LODR (Listing Obligations and Disclosure Requirements) data, the bank has been making organizational changes. The bank's Board of Directors approved the appointment of Mr. Viral Damania as the new Chief Financial Officer and Key Managerial Personnel, effective from September 22, 2025.

As the situation unfolds, stakeholders, including investors, regulators, and customers, will be closely watching the developments at IndusInd Bank. The outcome of this investigation could have significant implications for the bank's reputation, governance practices, and future financial performance.

The bank's management and board will likely face pressure to enhance transparency, strengthen internal controls, and restore investor confidence in the wake of this controversy. As the investigation proceeds, more details are expected to emerge, providing a clearer picture of the accounting discrepancy and its potential long-term impact on IndusInd Bank.

Indusind Bank , a leading private sector bank in India, has announced the appointment of Viral Damania as its new Chief Financial Officer (CFO). The appointment, effective September 22, 2025, marks a significant addition to the bank's leadership team.

New CFO Appointment

The Board of Directors of IndusInd Bank approved Damania's appointment during a meeting held on September 22, 2025. Damania will also serve as a Key Managerial Personnel of the bank. This strategic move comes as part of the bank's ongoing efforts to strengthen its financial leadership.

Viral Damania's Professional Background

Viral Damania brings a wealth of experience to his new role at IndusInd Bank. Prior to this appointment, Damania served as the Chief Financial Officer at Bank of America India, where he oversaw the bank's branch entity and BofA Securities India Ltd. His responsibilities included being a member of the country leadership team and serving as a non-executive director on the board of BofA Securities India Ltd.

Impressive Qualifications

Damania's credentials include:

• Qualified Chartered Accountant
• Company Secretary
• Cost & Works Accountant
• ISACA certification in Information Systems Audit and Control

Extensive Experience

With over 27 years of professional experience across banking and professional services, Damania is well-equipped to take on the CFO role at IndusInd Bank. His career includes:

• CFO at Bank of America India
• Experience with Citibank N.A. in India, Bangladesh, and Sri Lanka
• Previous work at Price Waterhouse Coopers

Changes in Roles

As a result of Damania's appointment, there are changes in other roles within the bank:

• Mr. Santosh Kumar, who previously held additional responsibilities as Special Officer-Finance & Accounts, will no longer be categorized as a Key Managerial Person.
• Kumar will continue to serve as the Deputy CFO of IndusInd Bank.

This appointment reflects IndusInd Bank's commitment to strengthening its financial leadership and governance. The bank's decision to bring in a seasoned professional like Viral Damania underscores its focus on enhancing its financial strategy and operations in the competitive banking sector.