*IndusInd Bank has begun a process to claw back salary and bonuses from its former chief executive and deputy chief, after an internal review flagged misconduct and misreporting, sources with direct knowledge of the matter said.

To deter misconduct, Indian banking regulations have allowed clawback provisions in employee contracts since 2019, but such efforts have been rare, with just two known instances since, while employees may challenge such actions legally.

This year, IndusInd Bank disclosed incorrect accounting on derivative trades that prompted a $230 million hit to its accounts and led to the exit of former CEO Sumant Kathpalia and deputy CEO Arun Khurana in May.

Both now face investigations by the Indian markets regulator and enforcement authorities over accusations of insider t

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