IndusInd Bank faces scrutiny from BSE as report over internal audit sparks concerns about accounting practices

The Bombay Stock Exchange (BSE) has sought clarification from embattled IndusInd Bank Ltd following a news report published on The Economic Times website dated May 15, 2025. The article, titled "IndusInd Bank shares in focus as internal audit probes new accounting irregularities", has raised concerns over possible financial discrepancies within the private sector lender.

According to the report, an internal audit has been initiated at IndusInd Bank to investigate alleged irregularities in accounting practices. The nature and extent of the irregularities are not yet known, but the news has triggered investor concern, causing the bank's shares to see increased volatility during early trade on Wednesday.

In response, the Exchange has formally written to the bank, requesting clarification to ensure fair and transparent dissemination of information that may impact investor decisions. “The Exchange has sought clarification from IndusInd Bank Ltd on May 15, 2025, concerning the news item,” the BSE stated on its official website, adding that further updates will be shared once the bank responds.

IndusInd Bank, as of the time of reporting, has not issued an official statement regarding the contents of the news report. Market watchers are closely monitoring the situation, as any confirmed findings from the audit could have broader implications for the bank’s financial disclosures and corporate governance standards.

The Economic Times article cited unnamed sources familiar with the matter, indicating that the probe is at an early stage and that the irregularities may pertain to the treatment of certain non-performing assets (NPAs) and income recognition methods.

IndusInd Bank is one of India’s major private banks and is listed on both the BSE and NSE. Given its size and systemic relevance, any accounting-related issues are likely to be viewed seriously by regulators and investors alike.

Over the past five trading days, IndusInd Bank's share price has witnessed a notable decline, falling by ₹39.90 or 4.87%. Starting the period around the ₹820 mark, the stock saw a steady drop, particularly sharp after May 12, slipping below ₹800 and eventually closing at ₹780 on May 15, 2025.

Experts say this downward trend comes amid news reports of internal audits probing accounting irregularities, which appear to have triggered investor concerns and contributed to the selling pressure. While the price shows limited recovery attempts, the overall sentiment remained weak throughout the week. The bank’s shares closed marginally lower today, reflecting uncertainty amid lack of official clarity.

Investors and stakeholders now await a formal response from the bank to understand the actual position and next steps.