Top IndusInd exec knew of derivatives lapse, finds audit

Erstwhile deputy chief executive of IndusInd Bank Arun Khurana was well aware of the incorrect accounting of derivative trades that led to a ₹1,959 crore hole in its books, a forensic audit by accounting and consulting firm Grant Thornton found.

- Shayan Ghosh

According to two people aware of the audit, during the probe, auditors found out that not only was Khurana aware of the fact that these trades were wrong, he also allegedly dismissed concerns raised by the finance team.

"The team went through email trails and saw that Khurana knew. There was an instance of him not paying heed to red flags raised by the finance department which found out about it," one of the two people said on the condition of anonymity. The bank did not respond to an email seeking comments on the story. A call and a text message to Khurana remained unanswered as well. An email sent to Grant Thornton did not elicit a response.

Khurana, who had joined IndusInd in November 2011 from the Royal Bank of Scotland resigned on 28 April, two days after Grant Thornton submitted its report.