MUMBAI: 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.
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.
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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" 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, it would not comment further.
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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.
