IndusInd Bank takes the hit, flags employee fraud

Reports ₹2,329 crore net loss in Q4; bank close to picking a new CEO

- SUBRATA PANDA

IndusInd Bank on Wednesday reported a net loss of ₹2,329 crore in the January-March quarter (Q4FY25), as it substantially ramped up provisions and reversed incorrectly booked revenue and income entries worth over ₹2,500 crore linked to accounting discrepancies in the derivatives and microfinance segments discovered during the quarter.

Along with its worst ever quarterly loss, the bank disclosed its board suspects that fraud may have been committed against the bank that could involve certain employees with significant roles in the bank's accounting and financial reporting. Accordingly, the board has directed necessary steps be taken under applicable laws, including reporting to regulatory authorities and investigative agencies, and fixing the accountability of all persons responsible for these lapses.

The embattled lender, whose MD & CEO Sumant Kathpalia and Deputy CEO Arun Khurana stepped down last month taking responsibility of ₹1960 crore loss on its derivatives portfolio, asserted it has now appropriately accounted for and reflected the impact of all identified discrepancies in its financial results for Q4 and the year-ended March 31, 2025.

"The bank's financials now reflect full and fair representation of all the concerns brought to its attention," it said in a statement. ]

Sunil Mehta, the chairman of the bank, said the Board and the Management acknowledge that the lapses happened have been unfortunate for an institution like our Bank.