IndusInd Bank Board Suspects Fraud, Says Incorrectly Recorded Rs 173 Crore In MFI
The board has directed necessary steps be taken under applicable law, including reporting to regulatory authorities and investigative agencies.
After receiving reports of investigations carried out by an external professional firm and internal audit department, the board of IndusInd Bank Ltd. said on Wednesday that it suspects the occurrence of fraud against the lender, it said in an exchange filing.
The board suspects involvement of certain employees having a significant role in the accounting and financial reporting of the bank. The lender said that Rs 173 crore has been incorrectly recorded in the microfinance portfolio.
So far, the accounting issues in the bank's derivatives portfolio are expected to have an impact of Rs 1,960 crore on its balance sheet for fiscal 2025.
Separately, the two new accounting discrepancies in interest income—discovered in the internal audits last week—worth Rs 674 crore in its microfinance portfolio and Rs 595 crore in other assets and liabilities.
On top of this, the report submitted by the internal audit department on May 20 determined that a cumulative amount of Rs 172.6 crore was incorrectly recorded as fee income in the microfinance business over three quarters ending December and reversed in the March quarter, the bank said.
Accordingly, the board has directed necessary steps be taken under applicable law including reporting to regulatory authorities and investigative agencies and to also fix accountability of all persons responsible for these lapses, the exchange filing said.
The bank has appropriately accounted for and reflected the impact of all discrepancies identified in these reports while finalising the financial results for the quarter and financial year ended March 31, 2025.
