SEBI clarifies IndusInd Bank probe document, names executives

Mumbai

The Securities and Exchange Board of India (SEBI) issued a corrigendum to its interim order on IndusInd Bank, replacing the term “board note” with “engagement note” to clarify the nature of documents related to the bank’s internal dealings. The correction pertains to the appointment of global consulting firm KPMG in February 2024, which SEBI initially said was based on a board note but is now confirmed to be based on a less formal engagement note.

SEBI’s investigation into accounting irregularities revealed that the former Chief Financial Officer informed in January 2024 about hiring a consultant to assess financial impacts from identified discrepancies. KPMG later reported a financial loss of Rs 2,093 crore linked to these issues. Despite this significant loss, the bank did not disclose the findings to stock exchanges by the deadline of March 10, 2025, nor marked the data as unpublished price-sensitive information until March 4, 2025.

Further, KPMG sought additional discussions with bank officials to verify specific accounting entries. SEBI named four senior IndusInd executives—Arun Khurana (former Executive Director and Deputy CEO), Sushant Sourav (Head of Treasury Operations), Rohan Jathanna (Head of GMG Operations), and Anil Marco Rao (Chief Administrative Officer, Consumer Banking Operations)—who are barred from trading securities until further notice.

Meanwhile, RBI Deputy Governor J Swaminathan stated that the situation at IndusInd Bank is stabilizing, and RBI Governor Sanjay Malhotra acknowledged significant steps taken by the bank to improve accounting standards, noting the bank is performing well overall.