Controversies

Foreign-exchange derivative-accounting discrepancies

The bank identified irregularities related to the accounting and valuation of foreign-exchange derivative transactions after mark-to-market requirements were introduced. Reported estimates of the cumulative impact changed during internal and independent reviews. The disclosure caused a sharp fall in the share price, prompted audits by PwC and Grant Thornton, contributed to senior-management departures and resulted in a reported reduction in net worth.

Alleged insider trading investigation

SEBI investigated whether former senior officials and other individuals sold shares before the derivative-accounting losses were publicly announced. The regulator imposed interim trading restrictions and account freezes while the investigation proceeded.

Suspected microfinance-division income misrecording

IndusInd Bank disclosed that approximately Rs. 172.58 crore had allegedly been recorded incorrectly as fee income over three quarters of fiscal 2025 in its microfinance division. The bank said it began legal and disciplinary action against the employees involved.

RBI fines IndusInd Bank Rs 4.50 crore for non-compliance

Fine or penalty

The Reserve Bank of India imposed a Rs 4.50 crore monetary penalty on IndusInd Bank for non-compliance with several RBI directions, including exposure and prudential norms. The RBI said the action was based on regulatory-compliance deficiencies and was not intended to pronounce on the validity of customer transactions or agreements.