IndusInd Bank scam of 172.58 crore, irregularities continued for three quarters
IndusInd Bank has recently disclosed a case of major internal fraud in its microfinance operations. According to the bank, an amount of Rs 172.58 crore was wrongly shown as "fee income", which was recorded in three quarters of the financial year 2024-25. The layers of this fraud were revealed when the bank's internal audit team (IAD) and an external professional agency jointly investigated.
Irregularities continued for three quarters
The bank said in an exchange filing that the IAD submitted its report on May 20, 2025, in which it was found that Rs 172.58 crore was wrongly recorded as fee income in the three quarters up to December 31, 2024. This amount was refunded in the fourth quarter of FY 24-25.
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IndusInd suffers quarterly loss for the first time in 18 years
Not only this, but the bank also said that due to this scam, it has suffered a quarterly loss for the first time in 18 years. The bank suspects that some employees are directly involved in this fraud, who deliberately made accounting mistakes.
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Scam in derivative portfolio has come to light earlier as well
In March 2025 also, IndusInd Bank had admitted to accounting lapses in its derivative portfolio. At that time its impact on the net worth of the bank was said to be up to 2.35 percent. After this, the bank appointed PricewaterhouseCoopers (PwC) to analyze these irregularities in depth.
According to the PwC report, the total impact of these irregularities till June 30, 2024 was Rs 1,979 crore.
CEO and Deputy CEO resigned
After this financial crisis the bank's CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned. After this, the bank board has formed an executive committee which will handle the operations of the bank until the new MD & CEO takes charge.
'Unsubstantiated balance' of Rs 595 crore and interest scam of Rs 674 crore
The internal audit team has found not only fee income but also a suspicious amount of Rs 595 crore in "Other Assets", which has no concrete account. Not only this, investigation of the bank's microfinance portfolio also revealed that interest worth Rs 674 crore was also wrongly recorded in three quarters.
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