IndusInd Bank’s share price dropped 6.4% to an intra-day low of Rs 775.40 on the National Stock Exchange. The fall in the stock price came after a news report mentioned that the lender roped in EY to carry out a second forensic audit to investigate specifically a Rs 600 crore discrepancy.
The discrepancy is related to the accrual of interest income in its microfinance portfolio, as reported by The Economic Times, citing sources.
The matter was raised during the ongoing statutory audit for the previous fiscal year, leading the auditors to issue an additional notification under Section 143(12) of the Companies Act 2013.
After which, the auditors asked the bank to start a forensic audit around the Rs 600 crore discrepancy. EY will investigate to see if there were any lapses and fix accountability.
The audit by EY will be in addition to the forensic audit being conducted by Grant Thornton Bharat (GTB) to probe irregularities in the accounting of IndusInd’s forex derivatives portfolio.
“It is not an issue that spans multiple years. It seems to have occurred in the last financial year, possibly within the second and third quarter of the fiscal year,” reported the news media organisation, citing one of the sources. “But EY will investigate if there was any fraud committed.”
IndusInd Bank forex discrepancy issue
In March 2025, the private lender in an exchange clarified that it had detected some “accounting discrepancies” in its derivatives portfolio. The impact of these discrepancies is equivalent to 2.35% of the bank’s net worth. In cash terms, this works out to Rs 1,500-2,000 crore. Following this, the stock of IndusInd Bank hit lower circuits one after another, crashing more than 30% in a day.
IndusInd Bank Q3FY25
For context, the bank reported a net profit of Rs 1,402.3 crore in Q3FY25. In the same quarter a year ago, the bank posted a net profit of Rs 2,301 crore, tanking 39% year-on-year. The net interest income (NII) fell 1.3% YoY to Rs 5,228.1 crore, compared with Rs 5,295.6 crore a year ago.
Meanwhile, the other bank stocks were trading on a mixed note. The banking index Nifty Bank was up 0.6% at 27,892.95.