IndusInd Bank shares in focus as independent firm submits report on accounting discrepancies; check crucial details

Shares will be in focus on Monday, April 28, following the development.

The lender said that the firm has determined a cumulative adverse accounting impact on P&L at ₹1,959.98 crore as of March 31, 2025, which is similar to the amount disclosed on April 15, 2025.

"The bank will appropriately reflect the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and take measures to strengthen internal controls accordingly. The bank has already discontinued internal derivative trades from 1st April 2024," the filing to the stock exchanges said.

The filing further said that the investigation report has identified incorrect accounting of internal derivative trades, especially in the case of early termination, which resulted in the recording of notional profits, as the principal root cause for the accounting discrepancy.

"The report also examined the roles and actions of key employees in this context. The board is taking necessary steps to fix accountability of the persons responsible for these lapses and realign roles and responsibilities of senior management," it added.

The report was submitted to the bank on April 26, 2025.

On March 10 2025, the stock hit its 52-week low after the Reserve Bank of India (RBI) granted only one one-year extension to Sumant Kathpalia, managing director (MD) and chief executive officer (CEO) of IndusInd Bank, despite the bank's board requesting a three-year reappointment, according to news reports. Besides, on March 10 itself, the internal review by the bank had estimated an adverse impact of approximately 2.35% of its net worth as of December 2024.

In a stock exchange filing, the private sector lender had disclosed that the bank had noted some discrepancies in its derivatives portfolio which could have an adverse impact of about 2.35% of the bank's net worth as of December 2024 as per its internal review.

Analysts pegged the discrepancy at ₹2,100 crore in absolute terms.

The bank had, in parallel, appointed an external agency to independently review and validate the internal findings.