Page 6 - Banking Finance June 2025

BANK UPDATE

his tenure, which were misused by the branch in Ahmedabad, located in the IndusInd Bank Discloses
borrower. Shilaj area. The new branch was offi- Interest and Asset Ac-
In return, he allegedly received illegal cially opened on May 14, 2025, during
a ceremony led by Ajay Thakur, Gen- counting Errors Totaling
gratification in the form of cash, prop-
erties, and luxury items, routed eral Manager, Field General Manager Rs. 1,269 Crore
through dummy entities and family Office, Ahmedabad.
members. The ED stated these trans- The event saw participation from sev- IndusInd Bank has revealed financial
actions were layered to conceal their eral senior officials including Subrata irregularities amounting to Rs. 1,269
source. CSPL promoter Sanjay Surekha, Kumar Behera, Zonal Manager of crore, including Rs. 674 crore wrongly
already in judicial custody, had proper- Ahmedabad Zone, Shailendra Kumar recorded as interest in its microfinance
ties worth Rs. 510 crore attached business over three quarters of FY25,
Dubey, Deputy General Manager of
earlier. and Rs. 595 crore in unsubstantiated
the Ahmedabad Zonal Audit Office, balances under "other assets." These
The arrest comes after an earlier and S. V. Gopinath, Deputy Zonal
chargesheet filed in February. A special Manager. Tejas Patel has been ap- discrepancies were identified following
court in Kolkata remanded Goel to ED pointed as the branch manager of the an internal audit ordered by the bank's
custody for further investigation. The new Shilaj branch. audit committee after a whistleblower
case is seen as one of the largest in- complaint.
volving senior officials in the banking The opening of this branch aligns with The misreported interest was reversed
sector and raises fresh concerns over the bank's strategy to expand its retail by January 10, 2025, and the unsub-
governance in public sector banks. banking reach in fast-growing urban stantiated asset balances were offset
localities. With this addition, Bank of
against related liabilities. The bank
Bank of India Opens 94th India continues to reinforce its pres- noted that the internal audit, assisted
ence in the region and offer custom-
Branch in Ahmedabad ers easier access to banking services by EY, is examining accountability and
strengthening controls. Earlier in
Bank of India has expanded its footprint and financial solutions tailored to their March, the bank flagged balance mis-
in Gujarat by inaugurating its 94th needs.
matches in its derivative accounts.
A subsequent external review esti-
Creditors Recover Record Rs. 67,000 Crore via IBC in mated the adverse impact of these
lapses at Rs. 1,979 crore, or about
FY25
2.27% of the bank's net worth as of
Creditors recovered an all-time high of Rs. 67,081 crore through the Insol- December 2024. IndusInd confirmed it
vency and Bankruptcy Code (IBC) framework in FY25, reflecting a 42% in- will reflect the financial impact in its
crease over FY24's recovery of Rs. 47,206 crore. According to National Com- FY25 results and enhance oversight of
pany Law Tribunal (NCLT) data, this milestone was achieved through 284 derivative and asset-liability manage-
approved resolutions, including 267 corporate and 17 personal insolvency ment.
cases.

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6 | 2025 | JUNE | BANKING FINANCE