IndusInd suspects fraud within, sees deep loss in Mar qtr

IndusInd Bank Ltd on Wednesday said its board suspects fraud by key employees in its accounting and reporting departments that led to the recent financial blow-ups at the private sector lender.

- Shayan Ghosh

NEW DELHI: The bank sank to its biggest quarterly loss of ₹2,329 crore, as it provided for various discrepancies that surfaced in the last quarter.

The lender said its board was not apprised of the multiple accounting lapses, even at the time of approving financial results. The suspicion of fraud comes after receiving investigation reports on accounting of internal derivative trades, "certain unsubstantiated balances in other assets and other liabilities accounts of the bank," and microfinance interest income, the bank said in a statement.