COMPANIES

No Data Found

NEWS

No Data Found
Sebi looking into IndusInd Bank accounting discrepancies: Tuhin Kanta Pandey

Sebi looking into IndusInd Bank accounting discrepancies: Tuhin Kanta Pandey

IndusInd Bank recorded a consolidated net loss of Rs 2,328.92 crore in the January-March 2025 quarter as against a profit of Rs 2,349.08 crore in the corresponding period last fiscal.

Prashun Talukdar
Prashun Talukdar
  • Updated May 22, 2025 5:20 PM IST
Sebi looking into IndusInd Bank accounting discrepancies: Tuhin Kanta PandeyIndusInd shares rose 1.82 per cent at Rs 785.10.

Market regulator Sebi is looking into the IndusInd Bank Ltd accounting discrepancies, its chairperson Tuhin Kanta Pandey said on the sidelines of 16th Capital Market Conference organised by ASSOCHAM. "RBI (Reserve Bank of India) is looking into IndusInd Bank accounting discrepancies. Whatever Sebi has to do in relation to it, whatever Sebi's remit is, Sebi is doing. It is RBI's remit but if there are any egregious violations by anyone in its capacity Sebi is looking into it," the Sebi chief stated.

Advertisement

Related Articles

The crisis-hit private lender recorded a consolidated net loss of Rs 2,328.92 crore in the January-March 2025 quarter as against a profit of Rs 2,349.08 crore in the corresponding period last fiscal. 

Net interest income (NII) stood at Rs 3,048.3 crore for the March 2025 quarter and provisions soared to Rs 2,522.08 crore in Q4 FY25. Sequentially, the lender's gross non-performing asset (NPA) rose to 3.13 per cent in Q4 FY25 from 2.25 per cent in the December 2024 quarter.

IndusInd, in its first earnings report after uncovering accounting discrepancies, disclosed a potential internal fraud involving Rs 172.58 crore which had been incorrectly recorded as fee income during FY25.

In addition, the bank noted that a cumulative amount of Rs 670 crore in the microfinance business had been wrongly recorded as interest income during the first nine months of FY25 and was fully reversed as of January 10, 2025. The bank also reported unsubstantiated balances, totalling Rs 595 crore, in its 'other assets' accounts, which were offset against corresponding balances in 'other liabilities' accounts.

Advertisement

IndusInd disclosed in March that incorrect accounting of internal derivative trades has resulted in a Rs 1,960 crore hit to its accounts. Last month, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned from the bank, following which the Board appointed a Committee of Executives to oversee the operations of the bank, till a new MD and CEO assumed charge.

Looking ahead, the bank is in the advanced stages of appointing a new CEO and is expected to submit its proposal to the Reserve Bank of India by June 30, 2025. Market experts have suggested investors to stay away from the private lender on an immediate basis.

Meanwhile, IndusInd shares rose 1.82 per cent at Rs 785.10. At this price, it has corrected 19 per cent on a year-to-date (YTD) basis.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: May 22, 2025 5:17 PM IST
    Post a comment0