IndusInd Bank Faces Losses, Fraud, Insider Probe

IndusInd Bank reported a net loss of Rs 2,328 crore in Q4 and a 71% decrease in annual net profit following revelations of accounting lapses and suspected fraud by senior management. Independent probes and an audit revealed that former executives allegedly overrode internal controls, concealed information from the board and auditors, and engaged in wrongful accounting to mislead stakeholders. The Securities and Exchange Board of India (SEBI) is investigating six bank officials for possible insider trading related to stock option sales before these issues were disclosed. Both the CEO and deputy CEO resigned after the accounting irregularities emerged, and substantial share sales were made before the public announcement. The fraudulent activities have been reported to government authorities, who may pursue criminal charges. Despite the crisis, the bank maintains that its balance sheet is robust following remediation.