An investigation by the enforcement directorate (ED) pertaining to remittance transactions during 2011-14 has pulled down the shares of IndusInd Bank by 3%.

The private lender on Wednesday informed that the ED has filed a First Information Report (FIR) against certain entities and few employees of the bank over alleged financial irregularities in remittances for import transactions during the year 2011 to 2014.

The FIR, dated 9 July 2022, was filed with the Chennai CCB-1 Police Station, IndusInd Bank informed exchanges on Wednesday.

The lender clarified that the bank has no credit exposure to the entities being investigated. Most of the employees under the scanner have separated from the bank, it further stated.

The Chennai Zonal Office of the ED had been investigating the matter.

“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,” the private lender said.

The matter had been scrutinised by the Reserve Bank of India (RBI) in October 2015 and a penalty was levied on the lender. This was intimated to the stock exchanges vide a letter dated 28 July 2016, IndusInd Bank informed.

“The bank continues to extend full cooperation and assistance to the law enforcement agencies and is duty bound to take appropriate action against any of the named employees if found to have deliberately facilitated/abetted the conduct of any illegitimate transaction,” IndusInd Bank said.

Shares of IndusInd Bank closed Wednesday at Rs 817.75, down 3.42%.