After the top management exits at IndusInd Bank last week following the Grant Thornton report, other employees of the private lender are also likely to come under scrutiny, three persons aware of the matter told NDTV Profit.
Employees in the treasury, audit, risk, operations and other adjacent departments are undergoing investigations, two people said.
Currently, the bank is said to have been undergoing a statutory, concurrent and forensic audit by Grant Thornton, the independent firm appointed by it.
The investigation is happening beyond the treasury department. Everyone is being investigated because its an accounting issue, a person close to the development said.
While the Grant Thornton report points to Managing Director and Chief Executive Officer Sumanth Kathpalia and Deputy CEO Arun Khuranna—both resigned last week—responsible for the Rs 1,979-crore accounting discrepancy, other names could also be included in the report, another person said.
An email sent to the bank seeking a response on the matter did not yield a response at the time of filing this story.
While moral responsibilities have been taken up by the top management, other bank employees involved in the matter may also have to bear the brunt.
Most likely, lower level employees were given instructions from the top to execute the task and they did not act independently, one of the persons quoted above said.
Kathpalia, who resigned with immediate effect on April 29, was set to leave the bank in March 2026, after the RBI cut his tenure extension to one year, as opposed to the three-year extension sought by the board. His exit comes amid a crucial chapter in IndusInd Bank's history, where questions on governance have been raised.
On March 10, the bank disclosed that it had identified certain accounting discrepancies in its derivatives portfolio. At the time, the estimated financial impact was Rs 1,500-2,000 crore. Later, through an external audit by PwC, it was estimated to be Rs 1,979 crore. An independent investigation initiated by the board on March 20 arrived at a potential impact of Rs 1,960 crore.
The independent investigation found that the accounting discrepancy was due to improper accounting of internal trades at IndusInd Bank. NDTV Profit had reported on March 17 that the bank had likely breached long-standing accounting norms during the accounting for internal trades.
Beyond these accounting discrepancies, the bank has also recently found discrepancies in IndusInd Bank's microfinance portfolio. The bank disclosed on April 22 that it had identified this issue and that the internal audit department at IndusInd Bank was investigating the matter. Global consulting firm EY is supporting the internal audit department in this investigation.
Employees in the treasury, audit, risk, operations and other adjacent departments are undergoing investigations, two people said.
Currently, the bank is said to have been undergoing a statutory, concurrent and forensic audit by Grant Thornton, the independent firm appointed by it.
The investigation is happening beyond the treasury department. Everyone is being investigated because its an accounting issue, a person close to the development said.
While the Grant Thornton report points to Managing Director and Chief Executive Officer Sumanth Kathpalia and Deputy CEO Arun Khuranna—both resigned last week—responsible for the Rs 1,979-crore accounting discrepancy, other names could also be included in the report, another person said.
An email sent to the bank seeking a response on the matter did not yield a response at the time of filing this story.
While moral responsibilities have been taken up by the top management, other bank employees involved in the matter may also have to bear the brunt.
Most likely, lower level employees were given instructions from the top to execute the task and they did not act independently, one of the persons quoted above said.
Kathpalia, who resigned with immediate effect on April 29, was set to leave the bank in March 2026, after the RBI cut his tenure extension to one year, as opposed to the three-year extension sought by the board. His exit comes amid a crucial chapter in IndusInd Bank's history, where questions on governance have been raised.
On March 10, the bank disclosed that it had identified certain accounting discrepancies in its derivatives portfolio. At the time, the estimated financial impact was Rs 1,500-2,000 crore. Later, through an external audit by PwC, it was estimated to be Rs 1,979 crore. An independent investigation initiated by the board on March 20 arrived at a potential impact of Rs 1,960 crore.
The independent investigation found that the accounting discrepancy was due to improper accounting of internal trades at IndusInd Bank. NDTV Profit had reported on March 17 that the bank had likely breached long-standing accounting norms during the accounting for internal trades.
Beyond these accounting discrepancies, the bank has also recently found discrepancies in IndusInd Bank's microfinance portfolio. The bank disclosed on April 22 that it had identified this issue and that the internal audit department at IndusInd Bank was investigating the matter. Global consulting firm EY is supporting the internal audit department in this investigation.
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