New controversy in IndusInd Bank, now serious allegations against the chairman, keep an eye on the shares

News Topical, Digital Desk : The big private sector bank IndusInd Bank is once again in the news. The bank's former CFO Govind Jain has written a letter directly to the Prime Minister's Office (PMO) demanding the removal of the bank's chairman Sunil Mehta. The allegation is that the long-running accounting irregularities in the bank were suppressed and those who wanted to expose them were targeted.

Allegations- According to Jain, he detected serious accounting matters in the bank's treasury division in late 2023. He claims that the chairman and his team have created an "atmosphere of fear" and helped to hide the irregularities. He said that he is being targeted financially and emotionally, even the bank did not accept his resignation so that he could not take up a new job. It is alleged that there were irregularities in tenders and projects as well and the board turned a blind eye to them.

What did IndusInd Bank say on this matter-  The bank has described all the allegations as extremely baseless and without merit in its reply to the PMO and press statement. The bank says that whenever accounting issues came to light, the board acted in a transparent and legal manner. The bank, on the contrary, accused Jain of dereliction of responsibility. The bank says that while being the CFO, he did not report to the board and signed off the financial statements himself. The bank says that this complaint is an attempt to derail the ongoing investigation and disciplinary proceedings. Why the controversy escalated In March 2025, the bank admitted that there was a problem in its derivatives portfolio, which could affect the bank's net worth by up to 2.35%. After this, the stock fell by a huge 26% and investors' confidence was shaken. CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned. Now efforts are being made to restore confidence through new MD & CEO Rajiv Anand (former Axis Bank) and new internal audit head Pragati Gondhalekar. If you have bought the stock then.. .Experts told CNBC Awaaz that the bank is already reeling from the shock of derivatives irregularities, and now new questions have been raised on governance. In such a situation, there may be pressure on the stock until clarity and stability comes. Long-term investors should currently focus on cash flow, NPA trend and RBI's response. Short-term traders should be prepared for volatility in the stock, as every new news can lead to a sharp move.

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