Execs may have traded shares before disclosure

A forensic review by audit and advisory firm Grant Thornton found two executives of IndusInd Bank traded in its shares while they were aware of accounting lapses at the bank but before those were made public, a document reviewed by Reuters showed.

- SUBRATA PANDA

Crisil Ratings has put IndusInd Bank's long-term debt instruments on 'watch with negative implications', citing the private-sector lender's review of its microfinance (MFI) business and the resignation of two top executives.

The bank's long-term instruments include ₹4,000 crore of Tier-II and ₹1,500 crore of infrastructure bonds. Crisil said the rating action follows the resignation of top two key managerial personnel and disclosure that the bank's internal audit department is reviewing the MFI business to address concerns brought to its attention during finalisation of accounts. Separately, the bank had in March disclosed discrepancy in accounting of derivatives. IndusInd Bank's shares closed 0.94 per cent lower at ₹825.35 on the BSE.

Crisil noted that there has been no "material outflow" in IndusInd Bank's deposits for the last two months. As on March 31, the bank had deposits of ₹4.11 trillion and CASA (current account and saving account) ratio of 32.8 per cent. Deposits were at ₹4.09 trillion and CASA at 34.9 per cent on December 31, 2024.