The report, submitted on May 8, also found unsubstantiated balances aggregating to Rs 595 crore in “other assets” accounts of the bank, the Hinduja Group-owned lender said.
“The IAD has since submitted its report on May 8, 2025. Based on the report, it is noted that a cumulative amount of Rs. 674 crores was incorrectly recorded as interest over three quarters of FY 24-25, which was fully reversed as on January 10, 2025,” said the bank in a stock exchange filing.
The new accounting lapses were reported by The Economic Times in its May 15th edition. ET had reported that a whistle‑blower’s letter had flagged new anomalies. The letter raised concerns about a Rs 600-crore discrepancy in the accrual of interest income in the bank’s microfinance portfolio, and an instance of inappropriate relationship between a senior executive and an employee, who was sacked and subsequently rehired by this executive.
“The IAD has submitted its report on May 8, 2025 that there were unsubstantiated balances aggregating to Rs. 595 crores in “other assets” accounts of the Bank. These were set off against corresponding balances appearing in “other liabilities” accounts in January 2025,” said the statement.
While disclosing the discrepancies, the lender said that the audit department has also examined the roles and actions of key employees in this context. “The Board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate,” said IndusInd Bank through a stock exchange filing.The findings add to IndusInd’s growing woes and come just weeks after its CEO and deputy CEO resigned following a derivatives accounting lapse that hit the bank’s net worth.The whistle blower’s letter prompted joint auditors Chokshi & Chokshi and MSKA & Associates to request a forensic audit of the derivatives portfolio as well as the Rs 600-crore discrepancy in the bank’s microfinance portfolio, reported ET quoting its source.
Grant Thornton, the primary forensic auditor, delivered its report on the evening of April 26. The next day, IndusInd Bank disclosed that the cumulative adverse accounting impact on its earnings would be Rs 1,960 crore, as of March 31, 2025.
