IndusInd Bank Rs.2,000 Crore Lapse: Former Top Officials Admit Book Adjustments

Mumbai Police’s Economic Offences Wing (EOW) has widened its investigation into the alleged ₹2,000 crore accounting lapses at IndusInd Bank. Sources said that former top officials have admitted to making “adjustments” in the bank’s books.

Officials familiar with the case said the statements of former CFO Gobind Jain, Deputy CEO Arun Khurana, and CEO Sumant Kathpalia were recorded last week. Jain appeared before the EOW on Monday, Khurana on Tuesday, and Kathpalia on Wednesday.

Khurana, seen as a key figure in the alleged manipulation, was called again on Saturday for more questioning. Sources said he was aware of the adjustments and that his role is “crucial” in the case.

Investigators are also checking if some senior officials made personal profits from these irregularities. Sources said the adjustments boosted the bank’s stock price, which may have helped insiders trade with privileged information and make huge profits.

Some former officials have denied wrongdoing. But employees and ex-management members reportedly told the EOW that books were adjusted under two account headers to influence stock movements. A senior official said, “This looks similar to the Satyam scam.” The EOW will soon seek legal advice on possible charges against the bank’s former leaders.

The alleged lapses were first noticed in IndusInd Bank’s derivatives portfolio and later found in its microfinance operations. The scandal led to the resignations of CEO Kathpalia and Deputy CEO Khurana in April 2025. Since then, the EOW has questioned 7–8 employees along with the bank’s former top officials.

Adding more weight to the case, ex-CFO Gobind Jain had earlier written to the Prime Minister’s Office (PMO). In his letter dated August 26, he alleged treasury-related irregularities worth over ₹2,000 crore over nearly ten years. He claimed serious manipulations had been going on in treasury operations “for more than a decade.”

Sources said the same former executives questioned last week may be called again as the probe goes deeper.

Hit by losses in the derivative portfolio and weak asset quality, IndusInd Bank Ltd has reported a net loss of Rs 2,329 crore for the quarter (Q4) ended March 2025 as against a net profit of Rs 2,349 crore a year ago.

IndusInd Bank, a major private sector bank in India, is facing serious questions about a large loss of nearly ₹2,000 crore related to its foreign exchange derivative transactions. The issue has attracted attention from the bank’s auditors, who are now asking whether the situation is simply a mistake in accounting, a technical error, or something more serious like fraud.

The controversy centers around how IndusInd Bank handled certain foreign exchange trades. In March, the bank admitted that its derivatives portfolio was overvalued by around 2.35%, leading to a total loss of about ₹2,000 crore. The concern now is whether this misstatement was accidental or deliberate.So far, the bank has described the issue as an “accounting discrepancy” in its official statements to the stock exchanges and credit rating agencies. But this explanation may not be enough anymore. Since the losses are significant, and auditors have legal responsibilities under Indian law, they may be required to take further action if this turns out to be fraud.

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