Indusind Bank Limited has informed the Exchange about clarification on news item
INDUSINDBK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
IndusInd Bank has clarified a news report about new accounting irregularities flagged by its Internal Audit Department (IAD). The IAD found that Rs. 674 crores was incorrectly recorded as interest income across three quarters of FY 24-25, which was fully reversed by January 10, 2025. Separately, after a whistle blower complaint, the IAD found Rs. 595 crores in unsubstantiated balances in 'other assets' accounts that were set off against 'other liabilities' in January 2025. Combined, the irregularities total about Rs. 1,269 crores. The IAD has also examined the roles of key employees, and the Board is strengthening internal controls and fixing accountability of those responsible.
Negative for shareholders as it exposes serious accounting lapses and weak internal controls, adding to the bank's ongoing governance concerns. However, the issues have already been reversed and disclosed, which may limit further sharp downside. Expect continued stock volatility and regulatory scrutiny.