IndusInd Bank refutes ex-CFO Gobind Jain's allegations against chairman

IndusInd Bank has rejected allegations made by its former CFO, Gobind Jain, against Chairman Sunil Mehta, calling the claims meritless and part of an attempt to deflect accountability

Private sector lender IndusInd Bank on Thursday denied allegations made by its former chief financial officer against the bank’s chairman, stating that the claims were completely devoid of merit and merely an attempt to deflect due process of law and accountability.

 

In Q4FY25, the bank reported a loss of ₹2,329 crore after ramping up provisions and reversing incorrectly booked revenues and income entries linked to accounting discrepancies in the derivatives and microfinance segments.

 

According to media reports, former CFO Gobind Jain wrote a letter to the Prime Minister seeking removal of bank’s chairman Sunil Mehta from his position, alleging the latter’s involvement in covering up the accounting lapses.

 

“The bank categorically rejects these allegations against the board chairman and others, which are completely devoid of merit and an attempt to deflect due process of law and accountability,” the bank said in a statement on Thursday.

 

Jain resigned from the bank in January, much before the accounting lapses came into light. In his resignation letter, he cited pursuing opportunities outside the bank or within the promoter group.

 

“The board has collectively taken decisions to address incidents of gross irregularity, suspected fraud and dereliction of duty that were brought to the attention of the board. The bank has made disclosures in a fair and transparent manner based on investigations conducted by independent internal and external experts”, it further said, adding that the bank has also reported the matter to regulators and law enforcement agencies for which the bank is fully cooperating and has submitted all information and documents.

 

Following the disclosures of accounting lapses, Sumant Kathpalia, the former MD&CEO, and deputy CEO Arun Khurana of the bank resigned in April taking moral responsibility.

 

Rajiv Anand has recently taken charge as MD & CEO of the bank. Anand was deputy managing director of Axis Bank earlier.