IndusInd Bank Addresses Accounting Irregularities, Reverses Rs. 674 Crores, and Sets Off Rs. 595 Crores in Unsubstantiated Balances
IndusInd Bank Ltd. has addressed certain accounting irregularities in its MFI business, following a review conducted by its Internal Audit Department (IAD). The IAD's report, submitted on May 8, 2025, revealed 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 of January 10, 2025. Additionally, the IAD found unsubstantiated balances aggregating to Rs. 595 crores in 'other assets' accounts, which were set off against corresponding balances in 'other liabilities' accounts in January 2025. The Bank's Board is taking necessary steps to strengthen internal controls, fix accountability, and take appropriate action against those responsible for these lapses. The Bank remains committed to complying with its disclosure obligations under Regulation 30 of the Listing Regulations.
Key Highlights
- IndusInd Bank's Internal Audit Department conducted a review of the Bank's MFI business, revealing accounting irregularities.
- A cumulative amount of Rs. 674 crores was incorrectly recorded as interest and fully reversed as of January 10, 2025.
- Unsubstantiated balances of Rs. 595 crores were found in 'other assets' accounts and set off against 'other liabilities' accounts.
- The Bank's Board is taking necessary steps to strengthen internal controls and fix accountability.
- IndusInd Bank remains committed to complying with its disclosure obligations under Regulation 30 of the Listing Regulations.