Shares of IndusInd Bank fell 6% to ₹776 on April 22 after reports emerged that the bank has appointed Ernst & Young (EY) to conduct a second forensic audit. The new investigation will examine a ₹600 crore discrepancy in accrued interest income related to its microfinance portfolio.
This development comes alongside an ongoing audit by Grant Thornton Bharat (GTB), which is currently reviewing irregularities in the bank’s accounting of its forex derivatives portfolio.
EY’s scope includes identifying operational lapses, potential instances of fraud, and determining responsibility for the reported discrepancy.
Earlier this month, IndusInd Bank also engaged PwC to independently assess its forex derivatives accounting practices. PwC’s review estimated possible losses at ₹1,979 crore—substantially higher than the earlier projection of ₹1,600 crore. The firm also included significant disclaimers in its report. The estimated losses represent around 3.1% of the bank’s net worth.
In a separate announcement, IndusInd Bank promoted Santosh Kumar to Deputy Chief Financial Officer (CFO), ahead of its Q4 earnings. He replaces interim CFO Arun Khurana, who took on the role in January while also managing treasury operations.
Since March 10, when the bank first disclosed issues in its derivatives portfolio, IndusInd’s stock has declined 11%. However, in the last five sessions, it has recovered 16%, reflecting improving investor sentiment following the bank’s swift measures to probe and resolve the concerns.
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Source: Moneycontrol.
