IndusInd Bank stocks declined 6% to ₹776 on April 22 following reports that the board has hired Ernst & Young (EY) to carry out a second forensic audit. The audit will look into the ₹600 crore shortfall in interest income from the bank’s microfinance book.
This fresh probe is parallel to an ongoing investigation by Grant Thornton Bharat into accounting concerns with the bank’s forex derivatives. EY will examine operational failures, fraud possibilities, and responsibility regarding the microfinance debacle.
Earlier, PwC was hired for an independent audit of the forex portfolio, putting losses at ₹1,979 crore—well over the initial ₹1,600 crore estimate. PwC’s report also had large disclaimers. The estimated loss amounts to approximately 3.1% of the bank’s net worth.
In another move, the bank promoted Santosh Kumar to Deputy CFO prior to Q4 earnings, replacing interim CFO Arun Khurana.
Since March 10, when the bank initially came out with the forex problem, shares have declined 11%. However, they have gained 16% over the last five sessions on hope among investors on the bank’s remedial steps.
