Accounting Discrepancies: ICAI May Review IndusInd Bank's Books

Chartered accountants' apex body ICAI may review the financial statements of IndusInd Bank, which is grappling with discrepancies in accounting to the tune of Rs 2,100 crore.

The private sector lender, on March 10, disclosed about some discrepancies in its derivatives portfolio which could have an adverse impact of about 2.35% of the bank's net worth as of December 2024, according to its internal review.

Analysts peg the discrepancy at Rs 2,100 crore in absolute terms.

Against this backdrop, the Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India is likely to review the financial statements of the bank.

"As a proactive measure, ICAI-FRRB may undertake a review of the financial statements of IndusInd Bank," ICAI President Charanjot Singh Nanda told PTI on Thursday.

FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others.

Also, FRRB assesses the compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Bank of India.

Chartered accountants do most of the audit works.

IndusInd Bank had also said the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the RBI about this last week.

The final figure will be known after the external agency, which the bank has appointed, finalises its report by early April.