India, Nov. 11 -- IndusInd Bank Ltd. has begun a process to claw back salary and bonuses from its former chief executive and his deputy, after an internal review flagged misconduct and misreporting.

The IndusInd board has obtained legal opinion on fixing staff accountability on the basis of its own internal code of conduct and according to guidelines put out by the Reserve Bank of India, Reuters reported citing sources. The board views the IndusInd fraud case as one of "accounting misstatements, regulatory sanction, failure of internal controls and compliance, leading to breach of rules, regulations and damage to the bank".

IndusInd Bank's publicly available code of conduct regards such acts as constituting "misconduct, necessitating di...