The Mumbai Police Economic Offences Wing (EOW) has concluded its investigation into the accounting discrepancies at IndusInd Bank , finding no evidence of criminal conduct by the bank's executives. This development marks a significant turn in the probe that had initially raised concerns over potential fund manipulation.

Key Findings of the Investigation

• ₹1,950.00 Crore Discrepancy: The EOW determined this to be a genuine accounting error, not a case of fund diversion or manipulation.
• ₹258.00 Crore Entry: Initially flagged in Grant Thornton's audit report as potentially boosting net interest income, the investigation found no evidence of fund siphoning or criminality.

Executive Questioning and Outcome

The EOW questioned several top executives of IndusInd Bank, including:

• Sumant Kathpalia
• Arun Khurana
• Gobind Jain

After thorough interrogation, the EOW ruled out any wrongdoing by these executives.

Next Steps in the Probe

• Mumbai Police has sought clarification from the Reserve Bank of India (RBI) on certain technical points.
• The EOW expects to formally close the preliminary enquiry soon without filing a First Information Report (FIR).

Implications for IndusInd Bank

This development is likely to alleviate concerns about the bank's financial practices and corporate governance. It reinforces the importance of thorough investigations in distinguishing between genuine errors and intentional misconduct in financial reporting.

Upcoming Investor Event

In a separate development, IndusInd Bank has announced its participation in an upcoming investor event:

This participation indicates the bank's ongoing engagement with institutional investors and analysts, which is crucial for maintaining transparency and investor relations.

As the investigation nears its conclusion, stakeholders will be watching closely for any final statements from the EOW or regulatory bodies. The outcome of this probe underscores the complexity of financial accounting in large institutions and the importance of robust auditing and investigative processes in maintaining the integrity of the banking sector.

IndusInd Bank , a leading private sector bank in India, has taken a significant step in addressing alleged misconduct by its former top executives. The bank has begun the process of clawing back salaries from its ex-CEO and deputy CEO following findings of misconduct.

Key Developments

• IndusInd Bank has initiated a salary clawback process for its former CEO and deputy CEO.
• The decision comes in the wake of misconduct findings against these executives.
• The bank aims to recover compensation previously paid to the executives based on the misconduct determination.

Implications for Corporate Governance

This move by IndusInd Bank underscores the growing importance of accountability in corporate leadership. Salary clawbacks are becoming an increasingly common tool for companies to address executive misconduct and ensure alignment with shareholder interests.

What is a Salary Clawback?

A salary clawback is a provision that allows a company to reclaim previously paid compensation from executives under certain circumstances, such as misconduct or failure to comply with company policies.

Potential Impact on IndusInd Bank

While the specific details of the misconduct and the amounts involved in the clawback have not been disclosed, this action may have several implications for the bank:

1. Enhanced corporate governance practices
2. Potential impact on investor confidence
3. Possible changes in executive compensation structures

As this situation develops, stakeholders will be watching closely to see how it affects IndusInd Bank's operations and reputation in the banking sector.

IndusInd Bank's decision to implement this salary clawback demonstrates a commitment to maintaining high standards of corporate governance and accountability at the highest levels of management.