IndusInd Bank uncovers ₹1,269 crore accounting lapses, launches clean-up after audit probe

IndusInd Bank has issued a formal clarification in response to a news report published by The Economic Times on May 15, 2025, claiming the bank’s shares were under pressure amid an internal audit into fresh accounting irregularities.

In a stock exchange filing under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements (LODR), the bank referred to an earlier disclosure dated April 22, 2025, in which it confirmed that its Internal Audit Department (IAD) had launched a review of the Microfinance Institutions (MFI) business to investigate specific concerns.

Following a comprehensive review, the IAD submitted its report on May 8, 2025. The audit found that a total of ₹674 crore was incorrectly recorded as interest income across three quarters of FY 2024–25. IndusInd Bank confirmed that this amount had already been fully reversed as of January 10, 2025.

Additionally, the bank revealed that a whistleblower complaint prompted a deeper audit of entries under “other assets” and “other liabilities.” The internal audit discovered unsubstantiated balances amounting to ₹595 crore in "other assets," which were set off against matching entries under “other liabilities” in January 2025.

The audit further evaluated the conduct of key personnel involved in these accounting discrepancies. The bank’s Board has begun implementing measures to tighten internal controls, establish individual accountability, and initiate necessary action against those found responsible.

IndusInd Bank reiterated its commitment to transparency and regulatory compliance. “We are conscious of our disclosure obligations under Regulation 30 of the Listing Regulations and shall continue to comply with the same,” the statement concluded.

The clarification comes amid heightened scrutiny from investors and regulators, as the bank moves to restore confidence and address internal lapses.