Is Hinduja Taking Action as Fraud Hits IndusInd Bank?

New Delhi, May 22 (NationPress) Ashok P. Hinduja, the Chairman of IndusInd International Holdings Limited (IIHL), which promotes IndusInd Bank, initiated damage-control measures on Thursday after the bank reported a staggering Rs 2,236 crore loss for the January-March quarter due to fraud. “While the bank's capital adequacy is strong, IIHL remains committed to supporting the bank's growth should any additional equity be necessary,” Hinduja stated.

The Reserve Bank of India (RBI) has begun investigations into the accounting irregularities at IndusInd Bank.

Furthermore, the Securities and Exchange Board of India (SEBI) is probing potential violations in the IndusInd Bank situation after the bank disclosed suspected fraud and raised concerns about insider trading, according to SEBI Chairman Tuhin Kanta Pandey.

On Wednesday, IndusInd Bank's Board expressed suspicion of fraud involving specific employees who significantly influenced the bank's accounting and financial reporting. They have mandated all necessary actions under applicable laws, which include reporting to regulatory authorities and investigative agencies.

On May 20, the internal audit department of IndusInd Bank discovered that Rs 172.58 crore had been inaccurately recorded as fee income in the Microfinance (MFI) division over three quarters concluding in December, which was subsequently corrected in the fourth quarter of FY25.

This revelation followed the unexpected termination of the IndusInd Bank CEO last month after serious irregularities were uncovered in its foreign exchange derivatives and microfinance sectors.

Hinduja remarked, “The Regulator’s methodical approach in addressing these issues with appropriate guidance, as previously demonstrated in the banking sector, is commendable.”

He further expressed “unwavering trust in the Chairman and Board of Directors of the Bank” for their prompt actions in resolving discrepancies and related concerns.

This proactive approach aims to enhance standards of transparency and governance, which will rebuild trust in the bank. Hinduja emphasized that the current management's coordinated efforts, guided by the Board and other stakeholders, have ensured the bank's business remains strong with solid capital adequacy.

He concluded, “The customers’ continued confidence in the Bank reflects their trust in this institution, which we have upheld. This marks a new beginning with a clean slate to reclaim the esteemed position the Bank has held for decades.”