ICAI to Probe IndusInd Bank's Financial Discrepancy

The ICAI may review IndusInd Bank's financial statements due to a reported Rs 2,100 crore accounting discrepancy. The issue pertains to the bank's derivatives portfolio, impacting 2.35% of its net worth. The ICAI's FRRB emphasizes compliance with accounting standards, with a final report expected by early April.

The Institute of Chartered Accountants of India (ICAI) is likely to review the financial statements of IndusInd Bank, which is currently embroiled in a significant accounting discrepancy amounting to Rs 2,100 crore. This development comes after the bank disclosed irregularities in its derivatives portfolio on March 10.

The discrepancies could adversely affect approximately 2.35% of IndusInd Bank's net worth as estimated for December 2024, according to the bank's internal review. In response, the ICAI's Financial Reporting Review Board (FRRB) is considering a thorough evaluation of the bank's financial documentation.

ICAI President Charanjot Singh Nanda stated that the proactive review would ensure compliance with Accounting Standards and other regulations. The bank has also informed the Reserve Bank of India, with a final report from an external agency anticipated by early April.

(With inputs from agencies.)