IndusInd Bank board to realign top management after Rs 1,959.98 crore accounting discrepancy

The Report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profit

IndusInd Bank on Sunday said that the board of the bank is taking 'necessary steps' to fix accountability of the persons responsible for the accounting lapses and realign roles and responsibilities of senior management after an independent firm submitted its report to the bank on 26 April.

"The independent firm has determined a cumulative adverse accounting impact on P&L at Rs 1959.98 crores as on 31 March 2025, which is similar to the amount disclosed on 15th April 2025," IndusInd Bank said in a regulatory filing.

"The bank will appropriately reflect the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and take measures to strengthen internal controls accordingly," it said in the filing. The Bank has already discontinued internal derivative trades from 1st April 202.

" The independent report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in the recording of notional profits, as the principal root cause for  accounting discrepancy," the filing further added.

Earlier, IndusInd Bank said that accounting lapses in the derivative portfolio will have a negative impact of Rs 1,979 crore on the bank’s networth. The bank has assessed an adverse impact (on a post-tax basis) of 2.27 per cent to its net worth as of December 2024 on account of discrepancies relating to derivative deals. The private sector lender last month reported the accounting lapses in the derivative portfolio estimated to have an adverse impact of approximately 2.35 per cent of the bank’s net worth as of December 2024.