As per the Economic Times reports, IndusInd Bank has been hit by fresh turmoil as its former Chief Financial Officer, Gobind Jain, has called the centre for the removal of board chairman Sunil Mehta. Jain alleges cover-ups of significant financial discrepancies going back over a decade.
As per the report, Gobind Jain, who resigned in January 2025, has written to the Prime Minister seeking the dismissal of board chairman Sunil Mehta. Jain claims that long-standing lapses in the bank’s treasury operations were uncovered solely by him. He states that his efforts to rectify these issues resulted in internal retaliation, creating an “atmosphere of fear” and targeting whistleblowers.
The bank strongly refuted Jain’s accusations, labelling them baseless and an attempt to disrupt ongoing investigations. In March 2025, IndusInd Bank revealed fraudulent practices that included inflated income from microfinance loans, misclassified assets, and ₹1,960 crore of notional profits from internal derivatives, culminating in a ₹2,000 crore quarterly loss.
Read More: IndusInd Bank Share Price in Spotlight After Shareholders Reject Board Nomination Proposal!
As per the report, Jain further alleged that statutory and forensic audits were manipulated to favour the board, creating misleading reports. He asserted that regulators like the Reserve Bank of India and Securities and Exchange Board of India had not acted promptly despite severe red flags. Jain questioned why senior executives and risk committee members retained their positions despite the massive losses.
Following the audit reports, an internal investigation was ordered, revealing manipulation of financial controls at senior levels. Soon afterwards, CEO Sumanth Kathpalia stepped down, although Jain believes this action did not effectively address the deeper accountability issues within the organisation.
On September 4, 2025, IndusInd Bank share price opened at ₹771.80 on NSE, above the previous close of ₹768.10. During the day, it surged to ₹773.40 and dipped to ₹762.25. The stock is trading at ₹763.50 as of 10:10 AM. The stock registered a moderate decline of 0.60%.
Over the past week, it has moved up by 3.25%, over the past month, it has declined by 4.96%, and over the past 3 months, it has declined by 6.24%.
The dispute at IndusInd Bank has exposed significant internal friction and raised serious questions around corporate governance. As the matter now reaches the Prime Minister’s desk, broader regulatory and structural responses are expected in the weeks ahead.
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Published on: Sep 4, 2025, 12:19 PM IST
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