IndusInd Bank said on Thursday that its Internal Audit team found a mistake where Rs 674 crore was wrongly recorded as interest income for three quarters of the financial year 2024-25.
The audit report, shared on May 8, also found Rs 595 crore in the bank’s “other assets” accounts that could not be properly explained.
Read More: Stock Market Outlook: How Sensex, Nifty 50 & Bank Nifty May Move on May 16…
The bank said, “The Internal Audit Department submitted the report on May 8, 2025. It showed that Rs 674 crore was wrongly recorded as interest over three quarters of FY 24-25. This amount was completely reversed by January 10, 2025.”
This update comes after a news report by The Economic Times, which said the bank’s senior management got the audit letter just before the Reserve Bank of India (RBI) gave a one-year extension to the bank’s CEO, Sumant Kathpalia, on March 6. Earlier in March, the bank had also revealed problems with its derivatives portfolio, which caused its stock price to drop by 27% overnight.
The bank added, “The audit report also found Rs 595 crore in ‘other assets’ that were not supported by documents. These amounts were balanced against similar amounts in ‘other liabilities’ in January 2025.”
IndusInd Bank said it is now investigating the roles of the staff involved and is working to improve its internal checks. The bank’s Board will make sure those responsible are held accountable and will take necessary actions.
Also See: Mark Your Calendar: Belrise Industries Launches IPO at ₹85-90 Per Share — Know the Subscription Date
These new problems add to the bank’s difficulties, which began when the CEO and deputy CEO resigned recently after a mistake in derivatives accounting hurt the bank’s financial health.
Earlier, the forensic auditor Grant Thornton gave its report on April 26, and the bank disclosed that the total negative impact on its earnings would be Rs 1,960 crore as of March 31, 2025.
