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IndusInd Bank Accounting Lapses: NFRA, ICAI and SEBI Actions

6 June 20251 min read
BANKING & FINANCEIndusInd BankAccountingLapses: NFRA, ICAIand SEBI Actions6 June 2025safalsetu.com

Why in the news

Multiple regulators moved against IndusInd Bank after accounting lapses in its derivatives book surfaced.

Key facts

  • Disclosure: 10 March 2025; derivatives portfolio; estimated 2.35% adverse effect on net worth (December 2024).
  • The board suspects fraud by certain employees in accounting and reporting roles.

Regulatory actions

AgencyAction
NFRAActed on a CPGRAMS complaint; seeks RBI’s Grant Thornton forensic audit; examines auditors’ role
ICAI (FRRB)Reviewing FY24 and FY25 statements since 29 May; serious cases go to Director (Discipline)
SEBISuo motu UPSI probe; asked five officials, including ex-CEO Sumant Kathpalia and ex-Deputy CEO Arun Khurana, to disgorge ₹20 crore

Exam angle

  • NFRA = National Financial Reporting Authority.
  • UPSI = Unpublished Price Sensitive Information.

Test yourself

1. The NFRA is trying to obtain a forensic audit of IndusInd Bank done by which firm?

The forensic audit commissioned by RBI was by Grant Thornton.

2. What estimated adverse impact on net worth did IndusInd Bank report from its derivatives accounting discrepancies?

The bank estimated a 2.35% hit as of December 2024.

3. How much did SEBI ask five IndusInd officials to disgorge for alleged insider trading?

SEBI asked for disgorgement of ₹20 crore.

This topic is part of Daily Current Affairs 6 June 2025 (15 topics).

All topics of the dayDay quizJune 2025

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