IndusInd Bank to make additional provisions after Deloitte review of unit

Bharat Financial Inclusion Limited gave out micro loans without consent of customers, apparently due to a technical glitch

IndusInd Bank has informed the stock exchanges that it will set aside Rs 13.5 crore as additional provision this financial quarter (Q4FY22), responding to an external review of on allegations by anonymous people about the lender’s subsidiary.

The private bank's board noted the potential impact of Deloitte’s review which talked of lapses in product execution and client consent recording at Bharat Financial Inclusion Limited (BFIL). It constituted a committee to assess staff accountability, if any.

Deloitte’s review found that the technical glitch leading to the disbursement of loans without client consent was the result of IT change management and process