IndusInd Bank's ex-CFO accuses chairman of hiding accounting issues
IndusInd Bank is in the spotlight after its former CFO, Gobind Jain, accused Chairman Sunil Mehta of hiding accounting problems that triggered a big stock crash.
Jain also blamed a "culture of fear" at the top for letting these issues slide.
The bank quickly shot back, calling his allegations "completely devoid of merit" and "an attempt to deflect due process of law and accountability."
Bank says it has fully cooperated with regulators and law enforcement
IndusInd says its board worked together to reveal discrepancies in derivatives and microfinance income between March and May 2024.
They've stressed full cooperation with regulators and law enforcement.
As one spokesperson put it, Jain's claims are "completely devoid of merit" and "an attempt to deflect due process of law and accountability."
Bank's recent report of almost ₹2,000 crore in losses
The bank recently reported almost ₹2,000 crore in losses from suspected fraud—mostly due to wrongly counted derivative profits and overstated microfinance income—which led to a 27% drop in share price.
Internal probes saw then-CEO Sumanth Kathpalia resign, while authorities are now investigating ex-Deputy CEO Arun Khurana for possible insider trading.
Jain was CFO until he quit in January 2025
Jain was CFO until he quit in January 2025, saying he uncovered treasury irregularities that had persisted for over a decade and accused the board chairman of covering them up.
He wants Mehta out and an independent audit done—all as financial scandals continue shaking up IndusInd's reputation (and stock price).