An initial probe by the Mumbai Police’s Economic Offences Wing into accounting lapses at IndusInd Bank’s treasury desk has not found evidence that funds were siphoned to personal accounts or shell companies, with the discrepancies identified so far described as largely notional rather than clear cash outflows, according to reports.
Reportedly, the EOW has questioned about six to seven people to date, including former MD & CEO Sumant Kathpalia, former CFO Gobind Jain and former Deputy CEO Arun Khurana. Meanwhile, Siddharth Banerjee, head of the global market and financial institutions group, is expected to be summoned in the coming days. Investigators are roughly halfway through their enquiries and expect a clearer assessment of gravity and any criminality by the end of October.
The report added that investigators have flagged a specific accounting entry of roughly Rs 250 crore for closer scrutiny, an entry that may date to 2016, a year after the treasury derivatives desk began operations. The next phase of questioning is expected to focus on that entry and associated documentary trails. Current evidence points more to omissions in following prescribed processes than to demonstrable instances of personal enrichment.
According to the report, the issue first surfaced publicly in March when the lender disclosed an accounting discrepancy linked to its derivatives portfolio. Subsequent external and board-appointed reviews placed the adverse accounting impact at about Rs 2,000 crore.
The investigation remains ongoing and further witness interviews and forensic review of records will be decisive in determining whether regulatory breaches or criminal conduct occurred and in quantifying any actual monetary loss, the report said.
