IndusInd Bank faces fresh whistleblower allegations
Jun 3, 2026
Synopsis
The new complaint alleges insider trading by Samir Agarwal, former zonal head of eastern India at IndusInd Bank, manipulation of financial records, evergreening of microfinance loans, suppression of audit findings and attempts by senior management and board members to conceal irregularities.
A fresh whistleblower complaint sent to the Prime Minister's Office and multiple regulators including the Reserve Bank of India (RBI) has sought an investigation into alleged insider trading, governance failures and shortcomings in forensic and audit reviews at IndusInd Bank, deepening scrutiny of the lender after the discovery of a Rs 2,000-crore derivatives accounting discrepancy.
The complaint, a copy of which was seen by ET, was also sent to the Serious Fraud Investigation Office (SFIO), National Financial Reporting Authority (NFRA) and other agencies. It alleges insider trading by Samir Agarwal, former zonal head of eastern India at IndusInd Bank, manipulation of financial records, evergreening of microfinance loans, suppression of audit findings and attempts by senior management and board members to conceal irregularities.
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Agarwal allegedly generated gains of about Rs 46 crore through share transactions worth nearly Rs 815 crore before key developments became public. According to the complaint, he used confidential information obtained through his corporate banking responsibilities to facilitate trades by family members and related entities.
Samir agarwal did not respond to the Whatsapp message seeking comment. IndusInd Bank said in response to ET’s queries that it “rejects the assertions” made by the whistleblower, adding that all concerns have been “duly examined” in the past and “appropriate actions” taken in line with internal policies and regulatory requirements. It said it had proactively reported certain matters to authorities and, with the matter under review, in line with its regulatory obligations and it would not comment further.
The whistleblower complaint was sent to the bank at the end of May this year.
In one instance cited by the whistleblower, Agarwal's wife allegedly purchased more than 3.4 million shares of Kesoram Industries, a company within his loan portfolio, ahead of a major strategic transaction, resulting in gains of about Rs 3.26 crore. The complaint claims family-linked trades totalled about Rs 816 crore and generated gains exceeding Rs 53 crore, with a large portion linked to companies covered by his corporate portfolio.
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Agarwal, then based in Kolkata, was asked to go after an internal vigilance report in October 2024 found him and his associates dealing in insider trading in violation of the Sebi regulations. After an internal inquiry, his employment was subsequently terminated in January 2025.
While the report states that Agarwal was charge-sheeted and asked to disgorge gains arising from the alleged insider trading transactions, it questions what ultimately happened to the recovered money and whether any part of it benefited former chief human resources officer Zubin Mody or other senior executives. The whistleblower has alleged that the matter was not adequately reported to market regulators, as required by regulations, and has sought a detailed audit trail of the funds and disclosures made to regulators.
The report alleges that Grant Thornton Bharat’s investigation into IndusInd Bank and reports were influenced by senior management and board members, resulting in the suppression of evidence, protection of certain individuals and targeting of others. In response to ET’s emailed queries, the professional services firm said it categorically rejects the allegations.
“A plain reading of the concerned letter shows that these claims are motivated and lack any factual basis or supporting evidence. GTBharat has led some of the most complex investigations in India, and is committed to delivering work of the highest quality, with independence and professional integrity, providing confidence to markets and all stakeholders,” said a spokesperson of Grant Thornton Bharat.
Beyond the trading allegations, the complaint claims treasury-related accounting irregularities and differences between Indian GAAP and Ind-AS reporting were repeatedly presented to the bank's audit committee and board over several years without adequate challenge. It alleges that board members, audit committee officials, internal auditors and finance executives either failed to question the discrepancies or actively suppressed concerns.
The complaint also revived allegations of evergreening in the microfinance portfolio and concealment of losses through accounting adjustments.
The whistleblower urged regulators to institute an independent probe to examine the role of the board, audit committee, risk management committee, former executives, statutory auditors and forensic consultants. The representation sought a review of board and committee minutes, audit reports, investigation records and internal communications dating back to 2012, while also seeking protection for whistleblowers.
[The Economic Times]
