Indusind Bank Initiates Regulatory Action On Doubts Of Rs.172.6 Crore Fraud In Microfinance Business
Suspects employees’ involvement but has not yet disclosed their names and designations
By: : Ajay Singh
Update: 2025-05-21 14:45 GMT
Indusind Bank Initiates Regulatory Action On Doubts Of Rs.172.6 Crore Fraud In Microfinance Business
Suspects employees’ involvement but has not yet disclosed their names and designations
IndusInd Bank has pointed out a suspected fraud of Rs.172.58 crore in its microfinance operations from the misclassification of fee income over three quarters in Financial Year 2024.
The board initiated regulatory reporting and the matter will be dealt with internally to hold the persons involved accountable for the lapses. It suspected the involvement of some employees in the accounting and financial reporting.
The discrepancies were noted after a probe by an external professional firm and the bank's Internal Audit Department (IAD), which revealed in its report that the fee income was overstated and corrected in the March 2025 quarter.
The disclosure was made to the stock exchanges under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Regulations.
The matter includes concerns about accounting of internal derivative trades and unsubstantiated balances under ‘other assets and liabilities’.
The Bank stated that it reflected the financial impact of the irregularities in the audited results for the quarter and year ended 31 March 2025. However, it has not disclosed the names and designations of the employees involved.
The disclosure marks a significant governance-related development in the Indian banking sector this fiscal year, drawing attention to internal controls in high-volume businesses, including microfinance.