IndusInd Bank issued a clarification on Thursday following recent reports of accounting irregularities, acknowledging that its Internal Audit Department (IAD) had identified certain discrepancies within its microfinance business and flagged specific balances in its financial accounts.
In a filing with the stock exchanges, the bank confirmed that, as previously disclosed on April 22, its IAD had been conducting a review of its microfinance operations in response to certain concerns that were raised.
Internal audit of IndusInd bank
As a result of this review, the IAD submitted a report on May 8, 2025, which revealed that an amount of Rs 674 crore had been incorrectly recorded as interest income across three quarters of the fiscal year 2025 (FY25). IndusInd Bank clarified that this entire amount was subsequently reversed as of January 10, 2025.
Furthermore, the bank stated that following a whistle-blower complaint, the IAD was tasked with examining transactions recorded under the categories of “Other Assets” and “Other Liabilities.” In its findings, also dated May 8, the audit department reported unsubstantiated balances amounting to Rs 595 crore under “Other Assets.”
Taking measures against the lapses
The IAD’s review also extended to examining the roles and actions of key employees who were linked to these identified transactions. IndusInd Bank assured stakeholders that its board of directors is actively taking measures to strengthen its internal controls and ensure accountability. The bank further stated that it will take appropriate action based on the comprehensive findings of the internal audit.