IndusInd Bank: Notional profits in derivatives led to accounting errors

AN EXTERNAL AGENCY appointed by IndusInd Bank has said the root cause behind the accounting discrepancy was wrongly recording notional profits from internal derivative trades, especially when those trades ended early.

- SACHIN KUMAR

The bank hired a professional firm to thoroughly investigate the discrepancies disclosed on March 10, identify their root cause, find lapses and fix accountability. The bank's board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of the senior management.