IndusInd Bank, part of the Hinduja Group, has acknowledged further financial reporting lapses, with its Internal Audit Department revealing that ₹674 crore had been incorrectly recorded as interest income across three quarters of the financial year 2024-2025. The bank issued a clarification on Thursday through a regulatory filing, noting that the error has since been corrected.
The reversal of the misstated interest income was completed on January 10, 2025, following the audit findings submitted on May 8.
Read More: 25 IndusInd Bank Employees Named in Derivative Accounting Review by Grant Thornton.
In addition to the interest misstatement, the audit report highlighted another significant irregularity. A total of ₹595 crore was found in the “other assets” accounts without substantiating documentation. These balances were subsequently offset against entries in the “other liabilities” accounts in January 2025, as per the bank’s official statement.
These discrepancies come at a time when the bank is already under increased scrutiny for its financial disclosures.
Earlier, on April 27, IndusInd Bank had disclosed that the cumulative adverse accounting impact from various discrepancies had reached ₹1,960 crore as of the financial year ending March 31, 2025. This disclosure followed a forensic audit conducted by Grant Thornton, which was submitted on April 26.
This figure includes the recently reported interest misstatement and unsubstantiated balances, suggesting a wider concern around the accuracy and transparency of the bank’s accounting practices during the year.
These revelations come on the heels of a leadership crisis at the bank. Both the Chief Executive Officer and Deputy Chief Executive Officer resigned in recent weeks. Their departures followed a separate derivatives-related accounting lapse, which had already dented investor confidence and affected the bank’s net worth.
The developments indicate an ongoing effort to clean up the bank’s books, even as they underline deeper systemic issues that the management and board will need to address.
Following the announcement, share price of IndusInd Bank was trading lower by 2.63% as of 12:48 PM on May 16, 2025. The decline reflects investor concerns around governance and financial reporting integrity.
The coming weeks are likely to be crucial for the bank as it seeks to reassure stakeholders and navigate through its internal challenges.
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Published on: May 16, 2025, 2:23 PM IST
Team Angel One
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