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IndusInd Bank shares end flat after sharp decline in morning trade
Shares of IndusInd Bank ended flat on Friday after dropping nearly 6 per cent earlier in the day as the firm said its Internal Audit Department (IAD) found "unsubstantiated balances" of Rs 595 crore in "other assets" of its balance sheet, and has also examined the roles of key employees in this lapse.
The stock tanked 5.68 per cent to Rs 735.95 during the morning trade on the BSE. Later, at the fag-end of the trade, the stock managed to settle in the green, up 0.26 per cent at Rs 782.30.
At the NSE, shares of the firm ended at Rs 784.70, up 0.53 per cent after dropping 3.90 per cent to Rs 750 in morning trade.
In a regulatory filing on Thursday, IndusInd Bank said this balance was, later in January 2025, set off against corresponding balances appearing in "other liabilities" accounts.
It said following receipt of a whistleblower complaint, the IAD was asked by the audit committee of the board to review transactions recorded in "other assets" and "other liabilities". This was in addition to the review of the bank's MFI business, which the beleaguered lender had disclosed to the stock exchanges on April 22.
"Pursuant to receipt of a whistleblower complaint, the IAD was asked by the audit committee of the board to review transactions recorded in 'other assets' and 'other liabilities'. The IAD has submitted its report on May 8, 2025 that there were unsubstantiated balances aggregating to Rs 595 crore in 'other assets' accounts of the Bank. These were set off against corresponding balances appearing in 'other liabilities' accounts in January 2025," IndusInd Bank said.
The IAD has also examined the roles and actions of key employees in this context, it added.
Earlier on April 22, IndusInd had said as part of the process of finalisation of accounts, the bank's IAD is conducting a review of the bank's MFI business to examine certain concerns and it has engaged EY to assist the IAD.
"The board is taking necessary steps to strengthen internal controls, fix accountability of the persons responsible for these lapses and will take action as appropriate," IndusInd said.
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