IndusInd Bank, a prominent financial institution in India, has announced that it will incur a substantial charge of Rs 1,956 crore in the fourth quarter of the financial year 2025. This decision comes as a result of discrepancies in derivatives valuation, discovered following an independent investigation initiated due to the Reserve Bank of India’s (RBI) stricter regulations. The investigation revealed that internal derivative transactions between the asset-liability management desk and treasury departments had led to inflated earnings figures. In response to these findings, IndusInd Bank has stated its intention to hold employees responsible for these errors. This development underscores the importance of compliance and transparency in the banking sector, as regulatory authorities continue to tighten oversight to ensure the stability and integrity of financial institutions. The bank’s proactive approach to addressing these issues is crucial for maintaining trust and confidence among its customers and stakeholders.