Source : INDIA TODAY NEWS
Fresh trouble may be brewing for IndusInd Bank as a new whistleblower complaint sent to the Prime Minister’s Office, the Reserve Bank of India (RBI) and several other regulatory agencies has sought an investigation into alleged insider trading, governance lapses and shortcomings in audit and forensic reviews at the private sector lender, reported The Economic Times (ET).
The latest allegations come just months after IndusInd Bank disclosed a Rs 2,000-crore discrepancy linked to derivatives accounting, an issue that had already raised concerns over the bank’s internal controls and governance standards.
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According to the report, the complaint has also been sent to the Serious Fraud Investigation Office (SFIO), the National Financial Reporting Authority (NFRA) and other authorities.
WHAT ARE THE NEW ALLEGATIONS?
The whistleblower has alleged insider trading, manipulation of financial records, evergreening of microfinance loans, suppression of audit findings and attempts by senior management and board members to conceal irregularities.
At the centre of the complaint is Samir Agarwal, IndusInd Bank‘s former zonal head for eastern India.
The complaint alleges that Agarwal generated gains of around Rs 46 crore through share transactions worth nearly Rs 815 crore before key corporate developments became public.
According to the complaint, he allegedly used confidential information obtained through his corporate banking responsibilities to facilitate trades by family members and related entities.
INSIDER TRADING CLAIMS
One of the instances highlighted in the complaint relates to Kesoram Industries.
According to the whistleblower, Agarwal’s wife allegedly purchased more than 3.4 million shares of Kesoram Industries, a company that was part of his loan portfolio, ahead of a major strategic transaction.
The complaint claims the transaction generated gains of about Rs 3.26 crore.
The whistleblower further alleged that family-linked trades amounted to roughly Rs 816 crore and generated profits exceeding Rs 53 crore, with a significant portion linked to companies covered under Agarwal’s corporate portfolio.
WHAT HAS INDUSIND BANK SAID?
IndusInd Bank has denied the allegations.
Responding to queries from The Economic Times, the bank said it “rejects the assertions” made by the whistleblower.
The lender said all concerns raised had been “duly examined” and that “appropriate actions” had been taken in accordance with internal policies and regulatory requirements.
The bank also stated that it had proactively reported certain matters to the relevant authorities.
However, it added that since the matter is currently under review, it would not comment further.
Samir Agarwal did not respond to a WhatsApp message seeking comment, according to the report.
COMPLAINT COMES AFTER RS 2,000-CRORE ACCOUNTING ISSUE
The timing of the complaint is significant as IndusInd Bank has already been under the spotlight after the discovery of a Rs 2,000-crore derivatives accounting discrepancy, which triggered regulatory scrutiny and raised questions about risk management and governance practices at the lender.
The fresh allegations are likely to intensify attention on the bank’s internal processes and oversight mechanisms.
As of now, the allegations remain claims made in the whistleblower complaint, and there is no public indication that any regulator has reached a conclusion on the matters raised.
The Economic Times reported that the complaint was sent to the bank at the end of May.
Whether the allegations result in a formal investigation by regulators remains to be seen, but the development adds another layer of scrutiny for a lender that has already faced difficult questions over governance and accounting controls in recent months.
– Ends
SOURCE :- TIMES OF INDIA
