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IndusInd Bank denies engaging Ernst & Young (EY) for a forensic audit and clarified that the firm has only been roped in to assist the bank’s Internal Audit Department (IAD) in reviewing specific records.
Grant Thornton Bharat (GTB) is already examining irregularities in the bank’s forex derivatives accounting practices.
IndusInd Bank has issued a clarification following media reports suggesting a fresh forensic audit into its microfinance portfolio. The bank denied engaging Ernst & Young (EY) for a forensic audit and clarified that the firm has only been roped in to assist the bank’s Internal Audit Department (IAD) in reviewing specific records.
In an exchange filing, the bank stated, “As part of the process of finalization of accounts, the Bank’s Internal Audit Department 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, the Bank is engaged with EY to assist the IAD in reviewing certain records. The review by the Bank is ongoing.”
Shares of IndusInd Bank fell nearly 4.8 per cent to Rs 788.55 on the NSE on April 22 after a report by The Economic Times indicated that the board had initiated a second forensic audit through EY, focusing on a Rs 600 crore discrepancy linked to accrued interest income from the microfinance business.
“The bank has not engaged EY for a forensic audit as reported in the news item,” it clarified in the BSE filing.
Grant Thornton Bharat (GTB) is already examining irregularities in the bank’s forex derivatives accounting practices, and earlier this month, the bank had also engaged PwC to conduct an independent review.
The PwC report pegged potential losses from the forex derivatives issue at Rs 1,979 crore — substantially higher than the initial estimate of Rs 1,600 crore.
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