Mumbai: IndusInd Bank, where accounting anomalies have already accounted for the scalps of the CEO and his deputy, is set to report its March quarter and full year FY25 earnings on May 21, likely logging a significant net loss. A one-time charge of about ₹1,960 crore, tied to accounting discrepancies in its derivatives portfolio, is expected to dent the bottomline at the lender that has lately been consuming column inches over uncomfortable disclosures.The issue stems from the misaccounting of internal derivative trades, especially those terminated early. These errors led to the recording of notional profits, which artificially inflated the bank's financials over prior quarters.The bank, which is currently being run by a committee of senior executives, is also expected to speak to analysts after announcing the earnings. It remains headless after CEO Sumant Kathpalia resigned last month.Investor scrutiny is mounting as the bank is also expected to share the findings of an internal review of its microfinance business, initiated in response to concerns raised with the management. If the review uncovers further issues, it could pose additional economic and reputational risks.Adding to the turmoil, IndusInd Bank confirmed an ET report this week that a whistleblower had complained to the internal audit department. Following the complaint, the board's audit committee launched a review, uncovering unsubstantiated balances of ₹595 crore in the "other assets" account, which had been offset against "other liabilities" in January 2025.The bank has stated that corrective measures are underway, and accountability is being enforced internally. However, analysts warn that the series of disclosures could weigh heavily on investor sentiment and call into question the strength of internal controls and governance frameworks at the lender.
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