IndusInd Bank Limited (NSE: INDUSINDBK, BSE: 532187) confirmed a cumulative adverse accounting impact of ₹1,959.98 crore as of March 31, 2025, stemming from discrepancies in internal derivative trades. The findings, detailed in an independent audit report submitted to the Board on April 26, 2025, attribute the lapse to incorrect accounting practices for early-terminated trades that recorded notional profits instead of adhering to proper accounting standards.
Root Cause and Corrective Actions
The audit identified internal derivative trades, particularly those terminated prematurely, as the primary source of the discrepancy. These trades were improperly accounted for, leading to inflated profit figures. The Bank has discontinued all internal derivative trades effective April 1, 2024, and will reflect the ₹1,960 crore impact in its FY2024-25 financial statements.
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The Board is implementing measures to strengthen internal controls, including re-aligning roles and responsibilities of senior management and holding accountable individuals responsible for the lapses. Discussions during the Board meetings on April 26 and 27, 2025, focused on remedial steps and governance reforms.
Regulatory Compliance and Transparency
The announcement complies with SEBI Listing Regulations (Regulation 30), as the Bank provides comprehensive reports to the National Stock Exchange (NSE), BSE Limited, and the Luxembourg Stock Exchange. The full report is available on IndusInd Bank’s official website (www.indusind.com).
Anand Kumar Das, Company Secretary, emphasized compliance: “The Bank remains committed to transparency and has taken swift action to address these discrepancies while ensuring regulatory adherence.”
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Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
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Published on: April 26, 2025 / M Vishnu
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अद्वेष्टा सर्वभूतानां मैत्रः करुणा एव च।
One who is not envious but is a kind friend to all living entities is certainly eligible for liberation.
