IndusInd Bank's share price experienced a notable decline on Wednesday, dropping close to 3% following the emergence of a whistleblower complaint. The complaint, which has been forwarded to the Prime Minister's Office (PMO), the Reserve Bank of India (RBI), and several other regulatory bodies, alleges significant irregularities within the private lender.
The primary accusation centers on alleged insider trading by Samir Agarwal, identified as a former zonal head for eastern India at IndusInd Bank. According to the complaint, Agarwal purportedly generated gains of Rs 46 crore through share transactions valued at approximately Rs 815 crore. These transactions are said to have occurred before critical company developments were made public, leveraging confidential information acquired through his corporate banking responsibilities for family members and related entities.
Allegations of Financial Manipulation and Concealment
Beyond insider trading, the whistleblower's report also points to broader governance failures, including the manipulation of financial records and the evergreening of microfinance loans. It further suggests attempts by senior management and board members to conceal irregularities and suppress audit findings. Copies of the complaint were reportedly sent to the National Financial Reporting Authority (NFRA) and the Serious Fraud Investigation Office (SFIO).
In response to the allegations, IndusInd Bank has stated that it "rejects the assertions" made in the complaint. The bank affirmed that all concerns have been "duly examined" and "appropriate actions" have been taken in adherence to internal policies and regulatory requirements. IndusInd Bank also indicated that it had proactively reported certain matters to authorities and would not comment further as the issue is under review.
Previous Scrutiny and Market Impact
This development comes as IndusInd Bank had previously faced scrutiny over a reported Rs 2,000-crore derivatives accounting discrepancy. The latest complaint has intensified regulatory oversight and contributed to the bank's shares falling to Rs 887.10 on the BSE, effectively erasing its entire gains for 2026.