India's IndusInd Bank slips on report of whistleblower complaint (updated)

Indusind Bank

03/06/2026 06:37

Changes para 1 to update share movement; adds bank's clarification in para 3 and 4
By Bharath Rajeswaran

    June 3 (Reuters) - Shares of IndusInd Bank INBK.NS pared losses on Wednesday after the private lender clarified that it has not received any communication from authorities regarding a fresh whistleblower complaint.
IndusInd Bank, fell 3.1% in intraday trade after a media report said a whistleblower had sought a probe into alleged insider trading, governance failures and shortcomings in forex and audit reviews at the Indian private lender. 
The bank had not received any communication from any government or regulatory authority regarding the alleged whistleblower complaint cited in the report, it said in an exchange filing.

    "All concerns raised in the news item have been duly examined in the past, and appropriate actions have been undertaken in accordance with the bank’s internal policies and applicable regulatory requirements," it added.
  
The stock pared some of the losses after the clarification, trading 1.6% lower as of 3:00 p.m. IST.      
The lender's shares have fallen about 5% over the past 15 months versus a 10.5% rise in the bank index .NSEBANK and a 7% jump in the private bank index. 
     The whistleblower complaint, sent to the Prime Minister's Office and multiple regulators, including the Reserve Bank of India, as per the ET report, comes after IndusInd Bank's March 2025 disclosure of a 20 billion rupee ($209.1 million) derivatives accounting discrepancy.
It alleges manipulation of financial records, evergreening of microfinance loans, suppression of audit findings, and attempts by senior management and board members to conceal irregularities, but the Economic Times report did not specify when the alleged irregularities took place.
IndusInd Bank has undergone a series of top-level changes since its March 2025 disclosure, with veteran banker Rajiv Anand taking over as chief executive in August 2025 following the exits of former CEO Sumant Kathpalia and deputy CEO Arun Khurana. 

($1 = 95.6400 Indian rupees)

IndusInd Bank underperforms India's private banks in the last 15 months https://reut.rs/4dYMW8W
 (Reporting by Bharath Rajeswaran and Aleef Jahan in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))