ICAI may review IndusInd Bank's books over Rs 2,100 crore accounting discrepancy: Report

The Institute of Chartered Accountants of India (ICAI) is expected to review IndusInd Bank's financial statements after the private lender disclosed accounting discrepancies in its forex derivative portfolio earlier this week, ICAI president Charanjot Singh Nanda told The Economic Times.

Nanda stated that the ICAI's Financial Reporting Review Board (FRRB) may initiate a review of IndusInd Bank's financial statements as a proactive measure. "If the FRRB finds that the bank's financial statements are not 'true and fair' as per stipulated standards, it can refer the case to ICAI's disciplinary committee for potential action against the auditors concerned," he said.

IndusInd Bank recently revealed that the discrepancies in its derivative portfolio could reduce its net worth by approximately 2.35% as of December 2024. The financial impact is estimated at nearly Rs 1,600 crore post-tax and about Rs 2,100 crore pre-tax.

The bank identified the discrepancies during an internal review of its processes related to other assets and liability accounts in its derivative portfolio, which spanned transactions over seven to eight years through FY24.