PwC Set to Reveal IndusInd Bank's Derivative Account Discrepancies

IndusInd Bank faces potential accounting discrepancies in its derivatives portfolio as PwC and Grant Thornton prepare detailed audits. An estimated Rs 2,100 crore could impact 2.35% of the bank's net worth, prompting regulatory and forensic examinations. Moody's has placed the bank's credit rating under review for a possible downgrade.

IndusInd Bank is slated to receive a critical audit report from PwC detailing potential discrepancies in its derivatives portfolio. Sources indicate that the bank's net worth may be impacted by Rs 2,100 crore, accounting for 2.35% of its total value.

Regulatory actions have been swift, with the Reserve Bank directing immediate remedial steps within the current quarter. Additionally, Grant Thornton has been tasked with conducting a forensic audit to uncover the root causes and gauge the implications of these financial mismatches.

The developments have prompted Moody's to place IndusInd Bank's credit ratings under review, signaling possible downgrades. Despite these challenges, the Hinduja Group has secured approval from RBI to potentially increase its stake in the bank as a show of support.

(With inputs from agencies.)