New Delhi: IndusInd Bank is in the middle of a huge crisis, after its ex-CFO accused the firm of accounting fraud worth approximately ₹2,000 crore. He claimed that the bank had camouflaged bad loans and juggled books to show higher profits.
The allegations also extend to insider trading, as some senior officials reportedly traded shares before this information went public. Evidence from the whistleblower has reportedly been submitted both to the RBI and SEBI.
It would be one of the biggest accounting scandals in recent years in the Indian banking sector if the claims were to be true. Investors are already on tenterhooks, as the bank’s stock saw a significant drop following the news.
IndusInd Bank has denied all charges and termed them “baseless and motivated.” The management said all its financial reporting follows standard rules and that internal audits are conducted from time to time.
Experts say this might prompt regulators to delve deeper into all private banks. Similar incidents in the past have led to tighter laws and even losses of investor confidence in India’s banking history.
