By Rashmi Rajput
Copyright indiatimes
Mumbai: The Mumbai Police are set to question former IndusInd Bank CEO Sumant Kathpalia and two other executives as part of a preliminary enquiry into alleged financial irregularities at the private sector lender, said people in the know.Former deputy CEO Arun Khurana is one of the other two executives the police plan to summon, the people said.”Summons will be sent in a day or two and the three will be asked to join the probe next week,” a senior police officer said. “They have been named in recent statements as the final decision-makers. Questioning will focus on that aspect.”The police launched the enquiry in August on a complaint filed by IndusInd Bank. So far, they have recorded statements from seven employees who were recently suspended by the bank over alleged lapses, as well as staffers linked to the lender’s former chief financial officer and members of its accounts department.No FIR has been filed yet. A preliminary enquiry is conducted to determine if a cognisable offence has been committed; an FIR is registered only if prima facie evidence emerges.Live EventsThe irregularities were related to unhedged Japanese yen contracts used by the bank to manage funding costs. Investigators believe inconsistencies in accounting methods created the problem: internal transactions between dollar and yen desks were recorded on an accrual basis, while external trades with banks were marked to market. This mismatch allegedly led to overstated profits in earlier years and deferred recognition of losses, which now stand at nearly ₹2,000 crore.In March, IndusInd Bank disclosed a ₹1,979-crore accounting lapse in its derivatives portfolio. A subsequent internal audit revealed an additional ₹674 crore wrongly booked as microfinance interest income and ₹595 crore in “unsubstantiated balances” under other assets. In May, the audit department also reported that ₹172.58 crore had been incorrectly classified as fee income over three quarters of FY25, which was reversed in the fourth quarter.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onindusind bankIndusInd Bankfinancial irregularitiespreliminary enquirySumant KathpaliaRashmi RajputMumbai Policeaccounting lapseJapanese yen contractsArun Khurana(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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