Former IndusInd CFO Gobind Jain urged the government to remove Chairman Sunil Mehta, accusing him of hiding the bank’s past accounting problems, according to the Economic Times.
On September 4, the lender’s stock fell over 1% to Rs 760 amid investor concerns.
Gobind Jain, former CFO of IndusInd Bank, resigned months before the bank disclosed accounting errors. In a letter to PM Modi, he stated he identified serious treasury issues and worked alone to expose them, the Economic Times reported.
Jain said Mehta and his team created a “fearful environment” at IndusInd Bank, attacking him for raising concerns while defending the guilty, the report stated.
The bank dismissed Jain’s allegations as baseless and motivated. It stated that it promptly reported the issues, commissioned independent audits, notified the RBI, and filed the required complaints.
IndusInd Bank disclosed errors in its derivatives portfolio, potentially reducing its net worth by 2.35% by December 2024.
The announcement led to a 26% decline in the lender’s stock within a day, erasing significant investor wealth.
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Following the crisis, former CEO Sumant Kathpalia resigned in April. The RBI stated that IndusInd Bank remains financially stable, with Governor Malhotra describing the issues as isolated incidents rather than failures.
