IndusInd Bank on Tuesday refuted media reports that stated that the private sector lender has roped in EY to conduct another audit, to probe Rs. 600 crore discrepancy in microfinance portfolio. In a regulatory filing, IndusInd Bank said, “We would like to clarify that the Bank has not engaged EY for a forensic audit as reported in the news item.”
IndusInd Bank further maintained that the Bank has engaged with EY to assist its internal audit dept in reviewing certain records. The exchange filing stated, “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.”
Per a report by The Economic Times that cited people aware of the matter, IndusInd Bank board had appointed EY to carry out a second forensic audit to investigate a Rs 600 crore discrepancy related to the accrual of interest income in its microfinance portfolio. The issue was flagged during the ongoing statutory audit for the last financial year, prompting the auditors to issue an additional communication under Section 143(12) of the Companies Act 2013, said one of the persons cited.
Earlier in March 2025, IndusInd Bank had, in an exchange filing, clarified that it had detected some “accounting discrepancies” in its derivatives portfolio. The impact of these discrepancies is equivalent to 2.35 per cent of the bank’s net worth. In cash terms, this works out to Rs 1,500-2,000 crore.
For the fiscal third quarter, IndusInd Bank had reported net profit of Rs 1,402.3 crore in Q3FY25, down 39 per cent in comparison to Rs 2,301 crore recorded during the same period of previous financial year. The net interest income (NII) fell 1.3 per cent YoY to Rs 5,228.1 crore.