IndusInd Bank Faces Fresh Probe Over ₹255 Crore Accounting Irregularities

IndusInd Bank is under renewed scrutiny as Mumbai Police’s Economic Offences Wing (EOW) investigates unexplained accounting entries amounting to approximately ₹255 crore. These entries were reportedly omitted from the bank’s initial disclosure of a ₹2,000 crore accounting lapse, raising concerns about potential financial discrepancies.

Details of the Investigation

The forensic audit conducted by Grant Thornton India uncovered manual entries that were not linked to any genuine internal trades or supported by documentation. These entries resulted in an overstatement on the balance sheet and the creation of excessive assets. The EOW is focusing on whether these entries were used to inflate net income and overstate assets during certain quarters.

Management Under Scrutiny

Key management personnel, including former CEO Sumant Kathpalia, former CFO Gobind Jain, and former Deputy CEO Arun Khurana, have been questioned in connection with the alleged irregularities. The EOW is expected to summon Siddharth Banerjee, the current head of the bank’s Global Markets and Financial Institutions Group, for questioning in the coming days. Investigators are also examining whether these accounting practices date back to 2017 or earlier.

Regulatory Oversight

The Securities and Exchange Board of India (SEBI) is revisiting its investigation into potential insider trading among senior officials at IndusInd Bank. The probe focuses on whether these officials sold stock options while being aware of accounting lapses before they were publicly disclosed. SEBI is reviewing trades executed by these officials and assessing whether the bank failed to comply with disclosure regulations.

Conclusion

The ongoing investigations into IndusInd Bank’s accounting practices highlight the importance of transparency and accountability in the banking sector. As the EOW and SEBI continue their probes, the banking community and investors will be closely monitoring developments to understand the full extent of the alleged irregularities and their potential impact on the bank’s operations and reputation.