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.

IndusInd Bank , a leading private sector bank in India, has announced the launch of 'Indus Startup Banking', a comprehensive banking programme designed to support and empower early-stage startups in the country. This initiative marks the bank's strategic entry into specialized banking services for the burgeoning startup ecosystem in India, amidst significant internal changes and financial developments.

Empowering Entrepreneurs with 360-Degree Support

The 'Indus Startup Banking' programme offers a full stack of banking facilities, credit options, and beyond-banking services to support new-age ventures from inception to scale. Startups under 10 years of vintage can avail themselves of this tailored banking solution, which aims to simplify day-to-day operations and reduce financial friction for emerging businesses.

Key Features of Indus Startup Banking

IndusInd Bank has curated a range of offerings to address the unique needs of startups:

• Financial Benefits: Startup Current Accounts with a 3-year waiver on non-maintenance charges
• Tech Integration: Access to over 250 APIs via a developer portal
• Business Solutions: Payments and collections solutions, corporate salary accounts for employees
• Value-Added Services: Beyond-banking services including tax filing, legal advisory, HRMS, and ESOP management
• Networking Opportunities: Access to premium PIONEER lounges across eight major cities for client and investor meetings
• Exclusive Privileges: PIONEER personal banking privileges for founders

Targeting India's Growing Startup Ecosystem

With India boasting over 1.75 lakh DPIIT-recognised startups and ranking as the third-largest startup ecosystem globally, IndusInd Bank's initiative is timely and strategic. The bank aims to partner with founders, offering flexible and customized solutions that allow entrepreneurs to focus on building their core business.

Leadership Perspective and Internal Changes

Soumitra Sen, Head of Consumer Banking & Marketing at IndusInd Bank, commented on the initiative:

"With the Indus StartUp Banking programme, we aim to stand by the aspiring and innovative entrepreneurs of the country as not just a banking partner, but as a long-term partner in growth. Our offering is designed to simplify day-to-day operations, reduce financial friction, and provide startup founders a platform to scale confidently."

Meanwhile, the bank is undergoing significant internal changes. The total workforce decreased by 663 employees to 44,974, while the number of employees earning at least ₹1.02 crore annually increased by 16.20% to 122. This high-earning group has more than doubled from 58 in FY21, growing at an annual rate of 11.40% over five years, compared to 8.00% growth for the total headcount.

Financial Performance and Leadership Transition

IndusInd Bank reported a 70.50% decline in net profit to ₹2,643.00 crore, attributed to higher provisioning for discrepancies in derivatives portfolio accounts. Employee costs rose 10.42% to ₹4,301.00 crore, while the median fixed remuneration increased by 7.30%.

In a significant leadership change, Managing Director Sumant Kathpalia, who earned ₹7.50 crore in the fiscal year, resigned in April. Rajiv Anand is set to become the new MD and CEO from August 25, 2025 to August 24, 2028, taking charge amid issues related to alleged irregularities in bad loan recognition and trading reversals.

Broader Support for the Startup Ecosystem

In addition to the new banking programme, IndusInd Bank continues to bolster India's startup ecosystem through strategic partnerships with organizations such as AIC STPINEXT, DPIIT - Startup India, and IIM Lucknow EIC.

Conclusion

The launch of 'Indus Startup Banking' underscores IndusInd Bank's commitment to innovation and its recognition of the vital role startups play in driving economic growth. By offering tailored financial solutions and support services, the bank is positioning itself as a key enabler in India's entrepreneurial landscape, helping to nurture the next generation of business leaders and innovators. This initiative comes at a time of significant internal changes and challenges for the bank, highlighting its focus on future growth and adaptation to the evolving financial landscape.