IndusInd Bank to Review Insider Trading Allegations After Forensic Audit

A forensic review by audit firm Grant Thornton has raised concerns of potential insider trading by IndusInd Bank’s former CEO, Sumant Kathpalia and former deputy Arun Khurana, as per the reports. The report suggests both individuals traded in the bank’s shares while being aware of accounting issues that had not yet been disclosed to the public.

As of 9:53 AM on May 12, 2025, Indusind Bank share price was trading at ₹822.10, a 1.10% increase, with a 10.57% decline over the past six months and a 1.46% drop over the past year.

Details of Share Transactions

According to National Stock Exchange data reviewed by Reuters, between March 2024 and March 10, 2025, Kathpalia sold IndusInd shares worth ₹283.48 million and purchased shares worth ₹102.71 million. Khurana sold shares worth ₹320.72 million during the same period. These transactions occurred before IndusInd revealed a $230 million discrepancy in its balance sheet due to misaccounted internal derivative trades.

Findings from the Forensic Report

The Grant Thornton review noted that the trades took place during a “period of seeming non-disclosure” and stated that the matter “may require a determination from an insider trading perspective.” The firm also found that several finance and treasury executives were aware of the accounting irregularities, and that concerns had been flagged as early as May 2023. The report also referenced emails suggesting attempts to delete or withhold information.

Read more: IndusInd Bank Shares Fall as $230 Million Accounting Discrepancy Comes to Light

Bank's Response

In a stock exchange filing on May 10, IndusInd Bank said it is examining the report’s findings. Depending on the outcome, the bank may take further action under applicable law and its Insider Trading Code. The Reserve Bank of India has also been given a copy of the report.

Conclusion

While Kathpalia cited “moral responsibility,” Khurana referred to “unfortunate developments.” The bank has not named a new CEO yet. RBI has approved a committee of executives to oversee day-to-day operations in the interim.

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