Last Updated:May 22, 2025, 14:45 IST
Sebi is examining for any major violations in the IndusInd Bank case as per its remit, chairman Tuhin Kanta Pandey said
Sebi Chairman Tuhin Kanta Pandey
SEBI Examining IndusInd Bank: Capital markets regulator SEBI is investigating potential major violations in the IndusInd Bank case, following the lender’s disclosure of suspected fraud and insider trading, SEBI Chairperson Tuhin Kanta Pandey said on May 22.
Speaking at an Assocham event in New Delhi, Pandey noted that while the Reserve Bank of India (RBI) is primarily responsible for scrutinizing the bank’s accounting discrepancies, SEBI is actively examining the matter within its jurisdiction. “RBI is looking into the accounting discrepancies at IndusInd Bank. SEBI is doing whatever falls within its remit. If there are any egregious violations by anyone, SEBI is looking into it,” he said.
The comments come amid growing regulatory pressure on the private sector lender after reports of accounting irregularities and insider trading involving senior officials surfaced.
IndusInd Reports Q4 Loss, Suspects Internal Fraud
IndusInd Bank reported a net loss of ₹2,328.92 crore for the fourth quarter of FY25—the bank’s first earnings release since uncovering significant accounting discrepancies. The loss triggered heightened scrutiny, top-level resignations, and multiple regulatory audits.
During its post-earnings call, the bank’s board said it suspects a fraud involving certain employees who played key roles in financial reporting. The matter has been reported to the relevant regulatory and investigative agencies, and the board has initiated actions under applicable laws.
The internal audit committee, citing the findings of an internal probe, indicated potential involvement of former Key Managerial Personnel (KMP) and senior officials. These individuals allegedly bypassed internal controls and concealed questionable accounting practices from both the board and statutory auditors.
Fee Income Overstated, Later Reversed
An audit conducted by the bank found that Rs 172.58 crore was incorrectly recognized as fee income in the microfinance portfolio across three consecutive quarters ending December 2024. The entire amount was reversed in Q4FY25, contributing to the net loss.
Board Takes Action, CEO Appointment by June 30
IndusInd Bank Chairman Sunil Mehta stated that the board is treating the issue with “utmost seriousness” and is taking proactive steps to prevent future lapses. “We are reviewing staff responsibilities, enforcing accountability, and strengthening our governance culture,” he said.
The bank is currently in the process of recommending a new CEO and expects to submit its proposal to the RBI by June 30.
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