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In a clarification shared today, the bank said, the Bank has not engaged EY for a forensic audit as reported. 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. The lender emphasized that EY has been brought in solely to assist the Internal Audit Department in reviewing certain records of the Bank and added that the review by the bank is ongoing. The clarification comes in response to media reports that triggered a sharp 4.88% fall in the bank's share price, dragging it down to Rs 787.65 today. Reports surfaced earlier today suggesting that IndusInd Bank had appointed EY for a second forensic probe'this time into a Rs 600 crore anomaly in its microfinance portfolio. The discrepancy, believed to be linked to interest income accruals, reportedly emerged during the statutory audit for the previous financial year. Sources cited in the reports claimed that statutory auditors had issued an alert under Section 143(12) of the Companies Act, 2013'a provision invoked when fraud is suspected. This, in turn, prompted the bank to deepen its review process. Importantly, this internal review is unfolding alongside a separate ongoing forensic audit by Grant Thornton Bharat, which is investigating irregularities in the bank's forex derivatives operations. While initial findings suggest the microfinance discrepancy may be limited to just a couple of quarters and not a multi-year issue, the back-to-back revelations have reignited concerns over the bank's internal controls, governance standards, and accounting oversight. For now, the bank is holding its ground'asserting transparency and cooperation'while markets await further clarity from the internal audit's findings. IndusInd Bank offers a wide range of products and services for individuals and corporates, including microfinance, personal loans, personal and commercial vehicle loans, credit cards and SME loans. The bank's standalone net profit declined 39% to Rs 1,401.28 crore while total income increased 8.5% YoY to Rs 15,151.01 crore in Q3 FY25 over Q3 FY24. Powered by Capital Market - Live News |