IndusInd Bank reverts on report, says "examining findings" on insider trading
This story was originally published at 22:13 IST on 9 May 2025
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MUMBAI – In response to a media report that said the audit firm hired by IndusInd Bank has hinted at insider trading by former officials, the bank Friday said they are "examining these findings". In a notice to the exchanges, the bank said they will take the necessary steps under the bank's insider trading code based on the outcome of such an examination.
The media report cited Reuters, quoting a summary of the findings that said, "Grant Thornton, which the bank hired to conduct an independent forensic investigation, found as a result of its review of internal accounts and communications that there were indications Kathpalia and Khurana traded in shares of IndusInd "during a period of seeming non-disclosure. Considering that employees had knowledge of incorrect accounting and/or its impact but traded in shares of IBL during the period may also require a determination from an insider trading perspective."
In April, weeks after the bank disclosed lapses and losses in its derivatives book, Sumant Kathpalia, the managing director and chief executive officer of the bank, and Arun Khurana, the deputy CEO, resigned with immediate effect.
The media report also said that Kathpalia and Khurana sold shares worth INR 1.57 billion between 2023 and 2024, according to data from the BSE. "The data reveals that Kathpalia sold approximately 950,000 shares, valued at Rs 134 crore (INR 1.34 billion), between May 24, 2023, and Jun. 25, 2024. During the same period, he purchased 396,000 shares worth Rs 34 crore (INR 340 million). Similarly, Khurana sold 550,000 shares for Rs 82 crore (INR 820 million) over 2023-24, while acquiring 238,000 shares worth Rs 25 crore (INR 250 million)," the media report said.
On Friday, shares of IndusInd Bank closed 1.04% lower at INR 818.20 on the National Stock Exchange. End
Reported by Kshipra Petkar
Edited by Ashish Shirke
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