IndusInd Bank is increasing instead of decreasing difficulty. The bank has explained a new lapsase in the accounting. The worst is that it has revealed that the bank having a senior employee. The case of lapsase in the bank’s derivative accounting was not yet calm that the news of the new lapses has not only increased the concern of the customers of the IndusInd bank but the investors. Its impact was seen on the results of the bank’s fourth quarter. After 18 years, IndusInd Bank arrived at loss. However, on 22 May it did not show its impact on the bank shares. The bank’s stocks recovered soon after the weak opening. At 10:42 pm, the share price was up 1.15 per cent to Rs 778.80.
Trouble is increasing in IndusInd Bank
Indusind bank For the first time on 10 March, he gave a big blow to its customers and investors. The bank then revealed that lapses were found in its derivative trading portfolio. The bank had said that it would affect its net worth. The impact of around Rs 2,000 crore was estimated on the first net worth. The bank appointed an independent auditor to examine lapses. The top management of the bank said that investors and customers will be informed about the auditor’s report. 10 days later, the board of the bank said that the bank has appointed an external agency to deepen the reasons for these lapses.
Fraud’s amount may be higher than anticipated
IndusInd Bank came to know about lapses in its microfinance business after a month. This estimated the impact of Rs 1,960 crore on the bank’s net worth. It has been reported in many reports that the amount of lapses in the derivative accounting of IndusInd Bank may be more than anticipated. After this case, two executives of the bank were forced to resign. These include Chief Executive and Chief Operating Officer. Both these executives took the moral responsibility of lapses and submitted their resignations.
Senior employee involvement in fraud is worrying
The fraud that IndusInd Bank has now revealed, senior employees are reported to have been involved. The bank said on May 21, “Based on the results of the investigation, there is a possibility of senior officers to join the fraud. Some senior officials did not care about the internal control. The wrong accounting practices were done and they were hidden from boards and statcherie audiors.” These include incorrect reporting of fee income of Rs 172.58 crore in the microffanance book, wrong recording of interest of Rs 674 crore and lapses in derivative accounting.
After 18 years, the bank faced loss
In the fourth quarter, the bank’s net interest income has declined by 45 per cent on a year -on -year basis. Non-interest income has declined 72 per cent. Because of this, the bank had to lift the loss in the March quarter. The bank was forced to provide a large amount for a possible fraud. However, the bank’s health on major standards is not poor. Deposit growth and loan growth is good. Bad loan holds 3.3 per cent in total loans, more than rival banks. However, this is not much. However, the bank has not suffered as much damage by the Bad Asset as Fraud has taken.
How much should customers and investors worry?
What will happen to Indusind Bank customers and investors? The answer to this question will be found in the next few months. Meanwhile, the eyes will be on the action of RBI. Second, it will have to be seen what kind of steps the bank takes to restore the trust of customers and investors. IndusInd Bank Chairman Sunil Mehta has said that the bank has identified all the difficulties in the fourth quarter. The bank will try not to allow such lapses again. Every time after the news of scam in a company or bank, such things are done by management. A lot will depend on how IndusInd Bank will implement these things.
