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New Delhi: The Hinduja-promoted IndusInd Bank is back at the centre of another controversy after a whistleblower exposed an internal vigilance committee’s report that indicts one of its former zonal heads of insider trading.

More importantly, The Wire has come to know that in spite of having all the necessary confirmation on unauthorised trades and insider trading – in which the former zonal head’s family undertook unauthorised trades of Rs 816 crores and booked a profit of Rs 53.2 crores inclusive of insider trading profit of nearly Rs 36.1 crores – the bank’s leadership has not informed the Securities and Exchange Board of India (Sebi) and the stock exchange about it, as mandated by the regulations, in what the whistleblower has called a massive cover-up exercise.

The bank’s internal vigilance report on October 12, 2024, revealed that Samir Agarwal, the then Zonal Head of eastern India used his family members’ accounts and based on insider information, traded in equity shares of Kesoram Industries and other companies that were part of the bank’s loan portfolio. Agarwal, the report noted, made a net gain of Rs 36.06 crores on the basis of insider information. Of the Rs 36.06 crores, Rs 7.6 crores was made through Agarwal’s own account from shares of borrower companies in the zonal head’s portfolio.

The report also noted that his family’s net gains from unauthorised trades was Rs 53.15 crores.

IndusInd Bank’s chief internal vigilance report shows the profit made by Agarwal and his family members.

The bank’s vigilance committee found that “the zonal head” – Agarwal – “was privy to sensitive information pertaining to the strategic sale transaction (of........

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