Haven't engaged EY for forensic audit, clarifies IndusInd Bank

Haven't engaged EY for forensic audit, clarifies IndusInd Bank.

IndusInd Bank has issued a clarification to the stock exchanges regarding reports of discrepancies in its microfinance portfolio, stating that it has not engaged Ernst & Young (EY) for an audit. The bank in a statement said that EY was instead appointed to support its internal audit department in reviewing certain records.

The company in an exchange filing, said "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 dropped 4.79 to Rs 788.55 per share on the NSE 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 Rs 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 Rs 1,979 crore—significantly higher than the initial estimate of Rs 1,600 crore.

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