IndusInd Microfinance Income Gap of ₹600 Crore Probed
Why in the news
A fresh accounting issue hit IndusInd Bank: microfinance income was recorded in lumps, adding to an earlier derivatives lapse.
Key facts
- Interest income was pooled across loans with no borrower-level entries; the gap is ₹600 crore.
- On 22 April 2025 the bank said internal audit was reviewing the business and EY would help with a forensic review of portfolio health and accounting accuracy.
- RBI reportedly asked the bank to correct the irregularities.
- Earlier, a ₹1,959 crore derivatives misstatement led to the exits of Deputy CEO Arun Khurana and CEO Sumant Kathpalia.
Microfinance exposure
| Item | Detail |
|---|---|
| Loan book share | 9% |
| Average loan (Q3 FY25) | ₹42,274 |
| Subsidiary (2019) | Bharat Financial Inclusion Ltd, ex-SKS Microfinance |
Concerns
- ICAI and banking experts: such lapses should have raised alarms sooner; each loan must be tracked for repayment, NPA status and interest.
- Calls for tighter audit standards and stronger RBI and ICAI oversight.
Exam angle
- Forensic reviewer: EY.