Mumbai, May 1 -- Erstwhile deputy chief executive of IndusInd Bank Arun Khurana was well aware of the incorrect accounting of derivative trades that led to a Rs.1,959 crore hole in its books, a forensic audit by accounting and consulting firm Grant Thornton found.

According to two people aware of the audit, during the probe, auditors found out that Khurana was aware of the fact that these trades were wrong. "The team went through email trails and saw that Khurana knew. There was an instance of him not paying heed to red flags raised by the finance department which found out about it," one of the two people said on the condition of anonymity.

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