Indusind Bank has recently revealed a large internal fraud case in its microfinance operations. According to the bank, the amount of 172.58 crores was incorrectly shown as “fees income”, which was recorded in three quarters of FY 2024-25. The layers of this fraud were opened when the bank’s internal audit team (IAD) and an external professional agency jointly investigated.

Disturbances continued for three quarters

The bank stated in the exchange filing that the IAD submitted its report on May 20, 2025, which found that 172.58 crore was wrongly recorded as income in three quarters till 31 December 2024. This amount was returned in the fourth quarter of FY 24-25.

Indusind’s quarterly losses for the first time in 18 years

Not only this, the bank also told that due to this scam, it has faced a quarterly loss for the first time in 18 years. The bank suspects that some employees are directly involved in this fraud, who intentionally made mistakes in the accounting.

Scam in derivative portfolio has been revealed earlier also

In March 2025, Indusind Bank also listened to the accounting laps in its derivative portfolio. At that time, its effect was stated up to 2.35 percent on the bank’s net worth. After this, the bank appointed PriecWaterhouseCoopers (PWC) so that it could analyze these disturbances in depth. According to the PWC report, by 30 June 2024, the total impact of these disturbances was 1,979 crore.

CEO and Deputy CEO resigns

Following this financial crisis, on 29 April, 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 over.

595 crore ‘unsabsted balance’ and 674 crore interest scam

The internal audit team has not only received the fee income, but also found a suspicious amount of 595 crores in “other assets”, which has no concrete account. Not only this, the investigation of the bank’s microfinance portfolio also revealed that an interest of 674 crores was also wrongly recorded in three quarters.

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