25 IndusInd Bank Employees Named in Derivative Accounting Review by Grant Thornton

According to news reports, A forensic audit led by Grant Thornton has identified 25 employees of IndusInd Bank in connection with accounting lapses related to derivative instruments, as per the reports. The list includes individuals from the bank’s treasury department, including the former Managing Director and CEO, Sumant Kathpalia, and Deputy CEO Arun Khurana, who was also the head of global trade.

As of 12:03 PM on May 7, IndusInd Bank share price was trading at ₹826.10, down ₹5.70 (0.69%) for the day, with the stock falling 21.83% over the past six months and 43.13% over the past year.

Multiple Treasury Officials Implicated

The employees named are mostly from the treasury team, including the Treasury Head and several senior officials at various levels. The report indicates that staff across the department were involved. The lapses are tied to unhedged Japanese Yen contracts, which had previously helped reduce funding costs for the bank.

Reports suggest that some senior treasury staff had raised concerns internally before the audit. Communication trails reportedly show that the management had been made aware of the accounting treatment and its possible impact on the bank’s financials.

Retention and Department Transfers Under Consideration

While IndusInd Bank has not confirmed how many of the identified employees will be dismissed, one source suggested that around half of them may be retained and moved to other departments. The decision on each case is expected to depend on the employee’s level of involvement and whether they flagged the issue earlier.

Read more: IndusInd Bank’s ₹1,500 Crore Forex Loss: What Went Wrong?

Background of the Audit

The matter was publicly acknowledged on March 10, when former CEO Kathpalia, during an investor call, mentioned accounting lapses related to derivative instruments. The bank stated that the lapses had occurred over a seven-year period. Grant Thornton has since been working with the bank to review and address gaps in internal processes.

Conclusion

The audit is still ongoing. Additional employee exits and structural changes may follow. Emails sent to IndusInd Bank and Grant Thornton had not received responses at the time of writing. Further updates are expected as the audit progresses.

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