Mumbai — IndusInd Bank announced on Sunday that it will fully absorb a ₹1,959.98 crore loss in its fourth-quarter results, stemming from what it described as “incorrect accounting practices.” The private sector lender also pledged strict action against employees involved and outlined steps to strengthen internal accountability.
The losses will be fully recognized in the March quarter earnings, the bank said, adding that it has conducted an independent review to uncover the lapses. While specific details about the nature of the accounting discrepancies were not disclosed, the bank indicated that the issues arose from practices inconsistent with regulatory and internal standards.
“The bank has undertaken a detailed review and will realign roles and responsibilities to reinforce accountability across the organization,” it said in a statement. IndusInd added that disciplinary actions are being initiated against individuals found responsible.
The revelation comes at a sensitive time for India’s banking sector, where regulatory scrutiny around governance and transparency has tightened significantly. IndusInd’s proactive move to take the entire hit upfront appears aimed at restoring stakeholder confidence and minimizing prolonged uncertainty.
Despite the one-time setback, IndusInd emphasized that its overall financial position remains robust, supported by healthy asset quality and capital buffers. It reiterated its commitment to best practices in corporate governance and regulatory compliance.
Further details are expected when the bank officially reports its fourth-quarter and full-year earnings in the coming days.
