On October 17, IndusInd Bank clarified that the reported accounting irregularity of Rs 255 crore is not part of any new investigation but relates to findings from an investigation report submitted by an independent external agency in April 2025. The bank stated these discrepancies were already disclosed and appropriately reflected in its audited financial statements for FY 2024-25, released on May 21, 2025.
The Rs 250 crore entry under scrutiny reportedly dates back to 2016, shortly after the treasury derivatives desk was established. Initial inquiries by Mumbai Police’s Economic Offences Wing (EOW) into the bank’s treasury fraud case have not uncovered any evidence of funds being siphoned to personal accounts or shell companies.
So far, the EOW has questioned six to seven individuals connected to the case, including former CEO Sumant Kathpalia, former CFO Gobind Jain, and former Deputy CEO Arun Khurana. Siddharth Banerjee, head of global markets and financial institutions at IndusInd Bank, is expected to be questioned soon.
Investigators indicated the probe is halfway through, with a clearer assessment of the issue’s severity and any criminal intent expected by the end of October.
