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IndusInd Bank disclosed a Rs 674 crore error in its microfinance books and flagged Rs 595 crore in unsubstantiated entries under ‘other assets’
IndusInd Bank Share Price Today
IndusInd Bank Share Price: IndusInd Bank has disclosed a significant accounting lapse following a whistleblower complaint concerning anomalies in its “other assets” and “other liabilities” entries. The complaint led the bank’s audit committee to initiate a thorough review of the flagged transactions.
In a regulatory filing, the bank revealed that unsubstantiated balances amounting to Rs 595 crore were recorded under “other assets” and were offset against corresponding amounts in “other liabilities” in January 2025. Additionally, the bank identified an error in its microfinance loan book, where Rs 674 crore was incorrectly recorded as interest income over three quarters in FY24-25. This entire amount was reversed by January 10, 2025.
The internal audit department (IAD) was directed by the board’s audit committee to investigate the matter further, including evaluating the roles and responsibilities of key employees involved in the discrepancies. “The board is taking necessary steps to strengthen internal controls, fix accountability, and take appropriate action against those responsible,” the bank stated.
The disclosures came in response to a media report highlighting an ongoing investigation by the IAD into the accounting irregularities following a whistleblower letter to the Reserve Bank of India (RBI) and the bank’s board. In April, the bank had already initiated a separate review of its microfinance business, appointing EY to assist with examining financial records after reports surfaced of a Rs 600 crore discrepancy.
As of the December 2024 quarter, IndusInd Bank’s microfinance portfolio stood at Rs 32,564 crore, making up 9% of its total loan book. The microfinance segment has been under pressure, with Q3FY25 reporting Rs 2,200 crore in slippages—many originating from the MFI segment.
The bank has also faced a spate of senior management exits following earlier accounting issues in its derivatives trading operations. One major concern involved a 2.35% overstatement in the derivatives portfolio due to longstanding misreporting.
On Thursday, shares of IndusInd Bank closed slightly lower at Rs 780.30, down 0.16%.
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