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Shares of IndusInd Bank fell sharply by 6.4% on Monday, reaching an intra-day low of ₹775.40 on the National Stock Exchange. The decline came after reports surfaced that global auditing firm EY (Ernst & Young) has been appointed to conduct a second forensic audit, targeting a ₹600 crore discrepancy in the bank's microfinance interest income.
The discrepancy was reportedly discovered during the statutory audit for the previous financial year, prompting the auditors to file a notification under Section 143(12) of the Companies Act, 2013. Following this, EY was engaged to determine the extent of any financial misstatement or potential fraud, and to identify accountability.
Dual Investigations Underway
The new audit by EY is in addition to an existing forensic audit being carried out by Grant Thornton Bharat (GTB). GTB is examining irregularities related to the bank's forex derivatives portfolio.
A source familiar with the matter told The Economic Times that the issue appears to be limited to the most recent fiscal year and likely occurred during the second or third quarter. However, EY’s audit will investigate whether there was any fraudulent intent involved.
Background: Forex Discrepancy Issue
In March 2025, IndusInd Bank disclosed to the stock exchanges that it had identified accounting discrepancies in its derivatives portfolio. These discrepancies were estimated to have a financial impact between ₹1,500 crore and ₹2,000 crore, amounting to approximately 2.35% of the bank’s net worth.
The revelation triggered panic in the markets, leading to a sharp 30% decline in the bank’s share price in a single day, with multiple lower circuits being hit.
Financial Snapshot – Q3 FY25
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Net Profit: ₹1,402.3 crore
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Year-on-Year Decline: 39% (compared to ₹2,301 crore in Q3 FY24)
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Net Interest Income (NII): ₹5,228.1 crore, down 1.3% YoY from ₹5,295.6 crore
Meanwhile, other bank stocks showed mixed trends. The Nifty Bank index was trading up by 0.6% at 27,892.95.
Disclaimer: This news article is published purely for informational purposes. It does not constitute financial advice or a recommendation to buy, sell, or hold any securities. Readers are advised to consult a certified financial advisor before making investment decisions.
