IndusInd Bank Flags ₹6.74 Billion Interest Misstatement In Microfinance Audit

IndusInd Bank on Thursday clarified that an internal audit had uncovered several irregularities in its microfinance operations, following a media report on the matter. The bank said the audit report was submitted to the board on May 8.

The audit found that ₹6.74 billion had been incorrectly recorded as interest income over three quarters of 2024-25. The bank said the entire amount was reversed on January 10.

Further, the audit revealed unsubstantiated balances of ₹5.95 billion under “other assets,” which had been offset in January against matching balances in “other liabilities.”

The bank said the audit committee reviewed the roles and actions of key employees. The audit was initiated after a whistleblower letter flagged a series of past accounting reversals to the board.

“The board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate,” the bank said.