IndusInd Bank has disclosed the findings of an independent investigation into accounting discrepancies first revealed in March. The report points to serious lapses, quantifying a ₹1,959.98 crore impact on the bank’s earnings, as the leadership moves swiftly to fix accountability and overhaul internal controls.
IndusInd Bank, through an official disclosure to stock exchanges on April 27, confirmed that an independent professional firm, appointed by its Board of Directors, submitted its investigative report on April 26. The firm’s report validated the cumulative adverse accounting impact of ₹1,959.98 crore on the bank’s Profit and Loss account as of March 31, 2025, closely aligning with the figure earlier disclosed on April 15.
“The independent firm has determined a cumulative adverse accounting impact on P&L at Rs 1959.98 crores as on 31 March 2025, which is similar to the amount disclosed on 15th April 2025,” IndusInd Bank said in a regulatory filing.
According to the report, the discrepancies were primarily stemmed from the incorrect accounting of internal derivative trades especially during early terminations. These practices led to the premature recognition of notional profits, marking the principal root cause of the financial misstatements. It also evaluated the roles and actions of key employees involved.
“The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,” the bank informed the bourses.
IndusInd Bank has already discontinued all internal derivative trading activities from April 1, 2024. Furthermore, the resultant financial impact will be duly reflected in the bank’s FY24-25 financial statements, alongside measures to fortify internal controls.
The board meetings discussing the report commenced at 8:42 pm on April 26, adjourned past midnight, and reconvened on April 27, concluding discussions by 6:25 pm. The disclosure is also available on the bank’s website, www.indusind.com. The bank has urged regulators and investors to take note of the developments.
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### Five Headline Options
1. **IndusInd Bank flags ₹1,959.98 crore hit after internal audit finds accounting lapses**
2. **₹1,959.98 crore impact: IndusInd Bank identifies root cause behind accounting discrepancies**
3. **After ₹1,959.98 crore jolt, IndusInd Bank moves to fix lapses in internal controls**
4. **Internal derivatives gone wrong: IndusInd Bank faces ₹1,959.98 crore accounting setback**
5. **IndusInd Bank uncovers ₹1,959.98 crore discrepancy, pledges accountability and reforms**
