IndusInd Bank's Stock Rollercoaster: Unsubstantiated Balances Uncovered

IndusInd Bank's shares oscillated sharply on Friday, initially dropping nearly 6% before closing slightly higher, following revelations of unsubstantiated balances worth Rs 595 crore. The bank's Internal Audit Department, prompted by a whistleblower complaint, probed the discrepancies as the bank's management took steps to address the issue.

Shares of IndusInd Bank experienced significant volatility on Friday, with an early decline of nearly 6% attributed to revelations from its Internal Audit Department. The audit identified unsubstantiated balances totaling Rs 595 crore within the bank's balance sheet under 'other assets'.

The stock saw partial recovery, ending slightly up, aided by the bank's assurance of corrective actions and improved accountability measures. At the NSE, IndusInd closed at Rs 784.70, up 0.53% after a sharp drop in the morning session.

A whistleblower complaint triggered the review, and the audit committee tasked the IAD to investigate transactions in 'other assets' and 'other liabilities'. IndusInd Bank is now focusing on strengthening internal controls and addressing the roles of key employees involved.

(With inputs from agencies.)