A formal complaint has alleged that a former zonal head for eastern India at IndusInd Bank generated approximately ₹46 crore in illicit gains through share transactions worth nearly ₹815 crore executed before key corporate developments were made public. The RBI, Serious Fraud Investigation Office (SFIO), and Prime Minister's Office are now examining the allegations.
Beyond insider trading claims, the whistleblower report flags governance failures including the "evergreening" of microfinance loans, manipulation of financial records, and attempts by senior management to suppress internal audit and forensic findings. IndusInd Bank has stated that an internal review of these new claims is actively ongoing.
The bank has previously denied allegations of accounting discrepancies and evergreening practices, characterizing such claims as unsubstantiated. However, regulators are currently reviewing the institution's financial statements as part of the broader inquiry.
IndusInd Bank shares declined by approximately 3% during trading on 3 June 2026 following news of the complaint. The immediate market reaction underscores investor concern about the regulatory scrutiny and alleged governance lapses.
