Mumbai, May 16 -- In a statement issued following a media report, the bank clarified that its Internal Audit Department (IAD) had reviewed the MFI operations and discovered that Rs 674 crore had been erroneously booked as interest income across three quarters in FY24-25. Crucially, the bank noted that the full amount was reversed by 10 January 2025.

Acting on a whistleblower complaint, the IAD also identified Rs 595 crore in unsubstantiated balances under "other assets," which were later adjusted against "other liabilities" in January 2025. The bank has launched a review into employee conduct involved in the matter and says it is taking steps to tighten internal controls and reinforce accountability.

IndusInd emphasized its commitment t...