New Delhi: Private sector lender IndusInd Bank has disclosed a fraud amounting to Rs 173 crore, uncovered during an internal audit. The issue came to light in the financial year 2024–25, when discrepancies in loan accounting were brought to the attention of the bank’s board.
According to official sources, the fraud involves misreporting of Rs 172.58 crore as income from the bank’s microfinance loan portfolio during the third quarter ending December 31, 2024. The income was later reversed in the fourth quarter, indicating potential manipulation by insiders.
Why Equity investing looks simple but isn't easy:
Indusind bank reporting a fraud of 172 crores
Solara: missing its own guidance by some marginHere is the solution: read about the management past and history. Both are good examples of the importance of reading history. CHAT… pic.twitter.com/kon96jiKsb
— ishmohit (@ishmohit1) May 21, 2025
Preliminary findings suggest the involvement of a few bank employees who may have willfully recorded incorrect figures, resulting in significant accounting irregularities. This led the bank to report a quarterly loss—the first such instance in nearly 18 years.
The bank confirmed that the irregularities stem from false entries made in its Microfinance Institution (MFI) business segment. The Board has raised serious concerns over the breach of internal controls.
In a related development, CEO Sumanth Kathpalia and Deputy CEO Arun Khurana resigned on April 29. Until new appointments are finalized, the board has constituted an Executive Committee of Directors to oversee the bank’s day-to-day operations. IndusInd Bank ranks as the fifth-largest private lender in India by total assets.
ALSO READ: Turkey Sends Bombs to Pakistan, Sweets to India—Netizens React with #BoycottTurkey