Corporate Grapevine     

Published: May 15, 2025
Updated: May 15, 2025

Indusind in another accounting fiddle

IndusInd Bank, controlled by the Hinduja group, finds itself at the centre of yet another corporate imbroglio. The private lender has been rocked by a series of troubling disclosures, the latest involving its microfinance operations. An internal audit report released recently revealed that the bank had erroneously recognised Rs 674 crore as interest income over three quarters of FY25. The sum was subsequently reversed on January 10.

This comes on the heels of an earlier finding by auditors, who uncovered unsubstantiated balances amounting to Rs 595 crore parked under ‘other assets’ and conveniently offset against ‘other liabilities’ in January — an accounting ma noeuvre that raises more questions than it answers.

These episodes expose glaring lapses not only within the bank’s governance structure but also in the supervi sory oversight of the RBI. One wonders what, if anything, the central bank was doing while these irregularities ac cumulated. That the RBI saw fit to extend the tenure of the bank’s managing director and chief executive by a year, even as red flags proliferated, has only deepened concerns.

The shadow of regulatory inertia hangs heavily over Mint Street. This is not the first time the RBI has appeared flat-footed — the Yes Bank debacle still lin gers in memory. A thorough housecleaning may now be required, not just in IndusInd’s boardroom but within the RBI itself.