2024-25 Accounts: IndusInd Bank To Take $230 Million Hit

India's fifth-largest private lender by assets, IndusInd Bank, said, "It would take a $230 million hit to its accounts for the financial year 2025. The reason behind the hit is due to the incorrect treatment of derivatives going back several years.

Based on the result, the bank will appropriately reflect the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and take measures to strengthen internal controls accordingly. The bank has already discontinued internal derivative trades from April 1, 2024, it said.

The bank further added that "The report identifies incorrect accounting of internal derivative trades, especially in the case of early termination, which resulted in the recording of notional profits, as the principal root cause for accounting discrepancy."

The report also examined the roles and actions of key employees in this context. Furthermore, the board is taking necessary steps to fix accountability of the persons responsible for these lapses and realign roles and responsibilities of senior management, it added.