MUMBAI: IndusInd Bank acknowledged further accounting lapses, this time in its microfinance portfolio. The private bank disclosed in a filing to the stock exchanges that it wrongly booked Rs 674 crore in interest income over three quarters in FY25. To offset this, it carried Rs 595 crore in unsubstantiated entries under “other assets.” The bank stated it reversed these amounts in Q4FY25 and has begun internal corrective measures.
The disclosure follows an ET report citing a whistleblower complaint and stating that the bank’s internal audit department reopened investigations into past accounting reversals. These included entries under “other assets” and “other liabilities” listed within operating expenses. These developments took place around the time RBI decided to extend CEO Sumant Kathpalia’s term by only a year on March 6. Both Kathpalia and deputy CEO Arun Khurana resigned in the last week of April 2025, taking responsibility for a bigger derivatives accounting lapse that will have a Rs 2,000-crore impact on the bank’s financials.