IndusInd Bank says ED investigating case on remittance transactions during 2011-14

The private sector lender on 13 July 2022 said that the Enforcement Directorate (ED) has lodged an investigation against certain entities and some bank employees in connection with financial irregularities.

A First Information Report (FIR) was filed on 9 July 2022, with Chennai Police against some of those entities and a few employees of the bank, the lender said.

There is no credit exposure of the bank to these entities, it added. The alleged remittance transaction fraud took place between 2011-2014.

"The Directorate of Enforcement, Chennai Zonal Office (ED) has been investigating a few entities inter alia for certain alleged irregularities in remittances for import transactions conducted during the year 2011 to 2014," the bank said in a clarification on Wednesday.

"The bank had suo moto filed Suspicious Transaction Reports (STRs) with the regulatory authorities during the relevant period for many of these entities. The bank had also filed complaints with the police authorities in 2015 against some of the unscrupulous entities," it added.

"Incidentally, the matter was subject of scrutiny by the RBl in October 2015 and a penalty was levied on the Bank which was intimated to the stock exchanges vide the bank's letter dated 28 July 2016."

"As part of the investigation, the ED has filed a First Information Report (FIR) dated 9 July 2022 with Chennai CCB-1 Police Station against some of those entities and few employees ofthe Bank, most of whom have already separated from the bank. A complete copy of the FIR along with the annexure is being retrieved. There is no credit exposure of the bank to these entities," it noted.

The bank said it continues to extend full cooperation and assistance to the law enforcement agencies. It will take appropriate action against any of the named employees if found to have deliberately facilitated/abetted the conduct of any illegitimate transaction.

IndusInd Bank caters to both consumer and corporate customers. As of 31 March 2022, the bank's distribution network included 2,265 branches/banking outlets and 2,767 onsite and offsite ATMs.

The bank reported 55.4% rise in standalone net profit to Rs 1,361.37 crore on an 6.1% increase in total income to Rs 9,761.89 crore in Q4 FY22 over Q4 FY21.

Shares of IndusInd Bank dropped 3.42% to Rs 817.75 on the BSE.

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