IndusInd's Hidden Fraud: 2017 Emails Expose Early Treasury Risks

Internal emails from 2017 show IndusInd Bank's executives, including Arun Khurana, knew of questionable Forex hedging practices without ALCO approval, potentially hiding losses and inflating profits. The October 14, 2025, revelations fuel RBI and MCA probes into deferred losses and restructured contracts, suggesting systemic oversight failures that misled stakeholders and influenced bonuses.

This scandal highlights weak governance in Indian banking, where informal decisions bypassed controls, risking investor trust. Analysts warn of broader implications for derivatives accounting, urging stricter audits and risk disclosures.

IndusInd denies misstatements, but investigations continue. To prevent similar issues, banks should enforce ALCO protocols, enhance transparency, and conduct regular compliance reviews.

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