IndusInd Bank may have delayed providing information to PwC, causing a holdup in the audit process, according to people familiar with the matter.
The financial statements may have also been misrepresented and may not align with India's auditing standards, the people told NDTV Profit on the condition of anonymity. The development followed the private lender's disclosure discrepancies in its derivatives accounting, estimated to affect its net worth by 2.35% on March 10. That sent the bank's shares sliding by 28% since then.
The country's professional accounting body under the Ministry of Corporate Affairs—Institute of Chartered Accountants of India—is also likely to examine MP Chitale & Co. and MSKA & Associates, the auditors responsible for the bank's financial statements, sources within the Institute said, adding that the case may be referred to its disciplinary committee for potential action against the auditors involved if the ICAI's Financial Reporting and Review Board uncovers significant issues.
The ICAI is also set to review statutory auditor PwC India's report on the accounting discrepancies in its treasury book.
To put this into perspective, the Hinduja-promoted bank had appointed big-four consulting firm PwC India to conduct an external check. NDTV Profit had earlier reported that PwC was likely to submit a report in up to three weeks on its findings in the matter.
The Economic Times had first reported that ICAI was expected to review IndusInd Bank's books after taking suo motu cognisance of the accounting discrepancies.
IndusInd Bank, PwC India, and ICAI did not immediately respond to a request for comment by NDTV Profit on the story. A representative from MSKA & Associates could not be immediately reached for a comment.
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