IndusInd Bank Battles Accounting Scandals with New Measures

IndusInd Bank reported a substantial net loss in the March quarter due to failures in accounting practices and potential internal fraud. The bank's leadership is undergoing a transition amid ongoing investigations, and the board is committed to implementing corrective measures to restore confidence.

IndusInd Bank has reported a significant consolidated net loss of Rs 2,329 crore for the March quarter, attributed to increased provisioning for accounting frauds. The board suspects employee involvement and has instructed the bank to alert regulatory and investigative bodies.

The private bank has been shaken by accounting errors, microfinance portfolio fraud, and balance sheet disclosure issues, prompting an internal audit and top-level resignations. A forensic probe is underway, and the bank's profitability has taken a hit, with a 71% plunge in net profit for FY2024-25.

Amidst leadership changes, IndusInd Bank's board is working to appoint a new CEO while taking accountability measures. Despite the turmoil, the bank maintains that its core business remains strong and is focused on restoring trust and pursuing sustainable growth.

(With inputs from agencies.)