IndusInd Bank Shares Plunge 6% After Internal Audit Findings

New Delhi, May 16 (PTI) Shares of IndusInd Bank on Friday dropped nearly 6 per cent after the firm said its Internal Audit Department (IAD) has found "unsubstantiated balances" of Rs 595 crore in "other assets" of its balance sheet, and has also examined the roles of key employees in this lapse.

The stock tanked 5.68 per cent to Rs 735.95 on the BSE.

At the NSE, shares of the firm dropped 3.90 per cent to Rs 750.

In a regulatory filing on Thursday, IndusInd Bank said this balance was, later in January 2025, set off against corresponding balances appearing in "other liabilities" accounts.

It said following receipt of a whistleblower complaint, the IAD was asked by the Audit Committee of the Board to review transactions recorded in "other assets" and "other liabilities". This was in addition to the review of the Bank's MFI business, which the beleaguered lender had disclosed to the stock exchanges on April 22.

"Pursuant to receipt of a whistleblower complaint, the IAD was asked by the Audit Committee of the Board to review transactions recorded in 'other assets' and 'other liabilities'. The IAD has submitted its report on May 8, 2025 that there were unsubstantiated balances aggregating to Rs 595 crore in 'other assets' accounts of the Bank. These were set off against corresponding balances appearing in 'other liabilities' accounts in January 2025," IndusInd Bank said.

The IAD has also examined the roles and actions of key employees in this context, it added.

Earlier on April 22, IndusInd had said that as part of the process of finalisation of accounts, the bank's IAD is conducting a review of the bank's MFI business to examine certain concerns and it has engaged EY to assist the IAD.

"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," IndusInd said.