IndusInd Bank said on Friday an independent review had found issues that may need to be assessed from an "insider trading perspective", responding to a Reuters story about an investigation that flagged such concerns.
Reuters reported on Thursday that a forensic review by audit and advisory firm Grant Thornton found that the bank's CEO Sumant Kathpalia and deputy Arun Khurana, who stepped down last month, traded in IndusInd shares while they were aware of accounting lapses at the bank but before those were made public.
"The report has identified certain aspects which may require a determination from an "insider trading perspective"," IndusInd said in an exchange filing late on Friday.
"The bank is examining these findings in the report and based on the outcome of such examination, the bank will take the necessary steps under applicable law including the bank's Insider Trading Code," IndusInd said.
Kathpalia and Khurana did not respond to text messages requesting comment on the bank's statement.
IndusInd, India's fifth-largest private sector bank, disclosed in March that years of incorrect accounting of internal derivative trades had led to a $230 million hole in its $60.8 billion balance sheet.
Grant Thornton, hired by the bank to conduct an independent forensic investigation, found in its review of internal accounts and communications that there were indications Kathpalia and Khurana traded in shares of IndusInd "during a period of seeming non-disclosure," Reuters reported, citing a document.
Kathpalia in his resignation letter said he was taking "moral responsibility", while Khurana resigned citing "unfortunate developments".
Separately, Moody's Ratings said on Friday it has changed its ratings outlook on IndusInd to 'negative' from 'stable', to reflect the potential for impact in the bank's solvency, funding or liquidity.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
