IndusInd Bank is in fresh trouble after a complaint was filed with the National Financial Reporting Authority (NFRA), India’s audit regulator. According to ET Now, the complaint, related to accounting discrepancies in the bank’s forex derivative portfolio, was submitted through the Centralised Public Grievance Redress and Monitoring System — an online portal for citizens to lodge complaints.
NFRA seeks RBI input, SEBI also watching closely
Following the complaint, the audit watchdog NFRA has reached out to the Reserve Bank of India (RBI) to collect more information. Based on its discussions with the RBI, the audit body will decide whether to initiate a formal investigation into the bank’s accounts, according to a report by ET Now.
The Securities and Exchange Board of India (SEBI) is also examining if there were any serious violations of its regulations. Meanwhile, the Institute of Chartered Accountants of India (ICAI) is reviewing the bank’s books for possible accounting lapses.
Discrepancies could hit IndusInd Bank’s net worth hard
Last month, IndusInd Bank revealed that the accounting discrepancies in its forex derivative portfolio could severely impact its net worth — by nearly 2.35 per cent as of December 2024. The bank had estimated the loss at around Rs 2,100 crore before taxes and about Rs 1,600 crore after taxes.
The private lender earlier discovered these discrepancies during an internal review. The issue traces back to transactions carried out over 7 to 8 years, ending in FY24, involving other assets and liability accounts related to the derivative portfolio.
IndusInd Bank faced heavy losses in latest quarter
In the most recent quarter, IndusInd Bank reported a consolidated net loss of Rs 2,329 crore, largely due to higher provisions made in light of the accounting frauds.
According to ET Now Digital, suspecting the involvement of certain employees, the bank’s board has advised the management to report the issue to the relevant investigative and regulatory authorities for further action.