IndusInd Bank clarifies on 'fresh probe' report; shares rise nearly 3%
In an exchange filing, the bank clarified that the Rs 255 crore accounting irregularity mentioned in the report was not part of any new investigation and had already been addressed earlier this year.
- Oct 17, 2025,
- Updated Oct 17, 2025 1:38 PM IST
Shares of IndusInd Bank Ltd advanced in Friday's trade after the private sector lender issued a clarification over a media report suggesting a "fresh probe" into accounting irregularities. The stock gained 2.89 per cent to touch a day high of Rs 760.60.
In an exchange filing, the bank clarified that the Rs 255 crore accounting irregularity mentioned in the report was not part of any new investigation and had already been addressed earlier this year.
"We would like to clarify that the accounting irregularity of Rs 255 crore as mentioned in the news report is not part of any new investigation being conducted by the Bank and that these findings were part of the investigation report submitted by the independent external agency to the Bank in April 2025," IndusInd Bank said.
The lender added that all relevant disclosures regarding the issue had already been made and that the financial impact of the discrepancies was reflected in its FY25 results.
"The Bank has made all the necessary disclosures in this regard, and it has appropriately reflected the resultant impact of these accounting discrepancies in the audited financial statements of the Bank for FY 2024-25 disclosed on May 21, 2025," it added.
The clarification comes a day ahead of the bank's July–September quarter (Q2 FY26) earnings announcement, scheduled for October 18.
Operationally, the bank reported a decline in both advances and deposits during the September quarter. Net advances fell 8 per cent year-on-year (YoY) to Rs 3.27 lakh crore, compared with Rs 3.57 lakh crore in the same quarter last year. On a quarter-on-quarter (QoQ) basis, advances declined 2 per cent, marking the third consecutive quarterly fall in the lender's loan book.
Deposits stood at Rs 3.89 lakh crore, down 5.5 per cent YoY from Rs 4.12 lakh crore, and 2 per cent lower sequentially. The CASA ratio dropped to 30.8 per cent from 35.9 per cent a year ago. Retail and small business deposits were slightly lower at Rs 1.84 lakh crore, compared to Rs 1.85 lakh crore in the June quarter.
During the quarter, the bank appointed Viral Damania as Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 22, 2025. Following this appointment, Santosh Kumar's additional responsibilities as Special Officer (Finance & Accounts) and his categorisation as Key Managerial Personnel ceased, though he continues as Deputy CFO.
The management reshuffle follows the appointment of Rajiv Anand as Managing Director and Chief Executive Officer (MD & CEO) for a three-year term beginning August 2025.
IndusInd Bank has been under regulatory scrutiny this year after accounting discrepancies were identified in its derivatives portfolio and microfinance operations, which led to the resignations of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April 2025.
Shares of IndusInd Bank Ltd advanced in Friday's trade after the private sector lender issued a clarification over a media report suggesting a "fresh probe" into accounting irregularities. The stock gained 2.89 per cent to touch a day high of Rs 760.60.
In an exchange filing, the bank clarified that the Rs 255 crore accounting irregularity mentioned in the report was not part of any new investigation and had already been addressed earlier this year.
"We would like to clarify that the accounting irregularity of Rs 255 crore as mentioned in the news report is not part of any new investigation being conducted by the Bank and that these findings were part of the investigation report submitted by the independent external agency to the Bank in April 2025," IndusInd Bank said.
The lender added that all relevant disclosures regarding the issue had already been made and that the financial impact of the discrepancies was reflected in its FY25 results.
"The Bank has made all the necessary disclosures in this regard, and it has appropriately reflected the resultant impact of these accounting discrepancies in the audited financial statements of the Bank for FY 2024-25 disclosed on May 21, 2025," it added.
The clarification comes a day ahead of the bank's July–September quarter (Q2 FY26) earnings announcement, scheduled for October 18.
Operationally, the bank reported a decline in both advances and deposits during the September quarter. Net advances fell 8 per cent year-on-year (YoY) to Rs 3.27 lakh crore, compared with Rs 3.57 lakh crore in the same quarter last year. On a quarter-on-quarter (QoQ) basis, advances declined 2 per cent, marking the third consecutive quarterly fall in the lender's loan book.
Deposits stood at Rs 3.89 lakh crore, down 5.5 per cent YoY from Rs 4.12 lakh crore, and 2 per cent lower sequentially. The CASA ratio dropped to 30.8 per cent from 35.9 per cent a year ago. Retail and small business deposits were slightly lower at Rs 1.84 lakh crore, compared to Rs 1.85 lakh crore in the June quarter.
During the quarter, the bank appointed Viral Damania as Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 22, 2025. Following this appointment, Santosh Kumar's additional responsibilities as Special Officer (Finance & Accounts) and his categorisation as Key Managerial Personnel ceased, though he continues as Deputy CFO.
The management reshuffle follows the appointment of Rajiv Anand as Managing Director and Chief Executive Officer (MD & CEO) for a three-year term beginning August 2025.
IndusInd Bank has been under regulatory scrutiny this year after accounting discrepancies were identified in its derivatives portfolio and microfinance operations, which led to the resignations of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April 2025.