IndusInd Bank shares fell sharply by nearly 6% on Thursday following revelations of significant financial discrepancies uncovered during an internal audit. The stock closed at ₹735.95 on the Bombay Stock Exchange (BSE), down 5.68%, and at ₹750 on the National Stock Exchange (NSE), reflecting a 3.90% drop.
The sell-off came after the bank disclosed that its Internal Audit Department (IAD), in response to a whistleblower complaint, identified unsubstantiated balances amounting to ₹595 crore recorded under “other assets” in its balance sheet. These were reportedly offset against entries in “other liabilities” in January 2025.
The IAD submitted its findings on May 8, confirming the presence of these irregularities. Additionally, the audit revealed that ₹674 crore had been incorrectly recorded as interest income across three quarters of the 2024–25 fiscal year. The bank stated that this amount was fully reversed by January 10, 2025.
IndusInd Bank has not reported any fraud but acknowledged the accounting issues, which have now raised questions about its internal controls and transparency. While the bank has reassured stakeholders that corrective measures are in place, the revelations have sparked investor concern and led to downgrades from some brokerages.
Analysts say that while the discrepancies may not impact the bank’s long-term fundamentals significantly, the timing and manner of disclosure could affect investor confidence. “These accounting lapses, though non-fraudulent, raise red flags about governance and internal audit rigor,” said a market analyst.
As the bank moves to restore trust, regulatory scrutiny may increase in the coming weeks, with both the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) expected to monitor the situation closely.
Investors are now watching for further clarifications from the bank’s management and any updates from regulatory authorities.
