IndusInd Bank on Tuesday, April 22, refuted media reports that stated that the private sector lender has roped in EY to conduct another audit, to probe Rs. 600 crorr discrepancy in microfinance portfolio. In a regulatory filing, IndusInd Bank said, “We would like to clarify that the Bank has not engaged EY for a forensic audit as reported in the news item.”
The private sector lender added that the bank has engaged with EY to assist its internal audit dept in reviewing certain records. The exchange filing stated, “As a part of the process of finalization of accounts, the Bank’s Internal Audit Department (IAD) is conducting a review of the Bank’s MFI business to examine certain concerns which have been brought to the Bank’s attention. In connection with this exercise, Bank is engaged with EY to assist the IAD in reviewing certain records of the Bank. The review by the Bank is ongoing.”
Shares of IndusInd Bank declined on April 22, following a report on Economic Times that the bank’s board has brought in EY to conduct a second forensic audit. The report added that the new probe will focus on a ₹600 crore discrepancy related to accrued interest income from the bank’s microfinance portfolio.
Grant Thornton Bharat (GTB) is already examining irregularities in how IndusInd Bank accounted for its forex derivatives portfolio. Earlier this month, IndusInd Bank also enlisted PwC to carry out an independent review of its forex derivatives accounting. That report estimated potential losses at ₹1,979 crore—significantly higher than the initial estimate of ₹1,600 crore
