IndusInd Bank brings Cyril Mangaldas for legal heft

Synopsis

This team would review and scrutinise external communications, including notices and reports from regulators, stock exchanges, and other stakeholders. It is also advising the bank on potential legal implications stemming from the audit reports submitted, sources said.

Mumbai: IndusInd Bank has engaged law firm Cyril Amarchand Mangaldas (CAM) for comprehensive legal counsel that would include scrutiny of the lender's communication with all its stakeholders, sources told ET, after shocking disclosures on accounting gaps caused a ₹1,960-crore write-down and felled the bank's chief executive earlier this week.

CAM has stationed a dedicated team at IndusInd Bank's Mumbai headquarters, said the sources cited above.

"A team from CAM has been stationed at IndusInd Bank's Mumbai headquarters, including the head of its banking law practice since the anomalies in the derivatives portfolio was revealed," said a source in the know. "They have been vetting all communication being sent out by the bank, to regulators and other stakeholders."

This team would review and scrutinise external communications, including notices and reports from regulators, stock exchanges, and other stakeholders. It is also advising the bank on potential legal implications stemming from the audit reports submitted, sources said.

IndusInd Bank and Cyril Amarchand Mangaldas did not respond to an ET query seeking response.

The presence of a legal team within the bank is particularly telling. According to sources familiar with the development, CAM's team has been reviewing all internal and external communications, making sure the bank remains compliant with regulatory expectations and that no communication inadvertently exposes it to further scrutiny.

The appointment of Cyril Amarchand Mangaldas was made in March 2025, shortly after IndusInd Bank disclosed its financial loss due to accounting discrepancies in its derivatives portfolio. The anomalies were related to misreported internal derivative trades, which had inflated notional profits and disguised the true financial health of the portfolio. This situation led to a staggering loss of ₹1,959.98 crore, prompting intense scrutiny from regulators and investors alike.

The discrepancies in the derivatives book have triggered questions not only about the bank's internal risk management and governance frameworks but also about the broader implications for its regulatory standing. This has led to a tightening of scrutiny from RBI, Sebi and stock exchanges.

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