The Institute of Chartered Accountants of India (ICAI) will review fraud-hit IndusInd Bank’s financial statements for 2023-24 and 2024-25. The institute’s Financial Reporting Review Board (FRRB) will carry out the review.
“It has been decided in the FRRB Board meeting today that FRRB of ICAI will undertake the review of the financial statements and the statutory auditor’s reports of the IndusInd Bank Limited for the financial years 2023–24 and 2024–25,” 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. FRRB assesses compliance with guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI).
IndusInd Bank crisis
Starting with a March 10 disclosure about a potential hit to the net worth because of incorrect recognition of derivative trades over the last two years, the last two months have been tumultuous for IndusInd Bank.
In March, the bank reported a ₹1,979 crore accounting lapse in its derivative portfolio, followed by its internal audit review finding ₹674 crore incorrectly recorded as interest from microfinance business, besides a ₹595 crore “unsubstantiated balances” in “other assets” of balance sheet.
On Wednesday, markets regulator Sebi barred former CEO of IndusInd Bank, Sumant Kathpalia, and four other senior officials from accessing the securities markets in connection with an alleged insider trading in the bank’s shares.
IndusInd Bank Q4 Results
IndusInd Bank reported a net loss of ₹2,328.9 crore on a consolidated basis for the fourth quarter ended March 31, 2025, mainly on account of higher provisioning and lower income.
The private sector bank has been embroiled in accounting lapses, fraud in microfinance portfolio and balance sheet disclosures during the March quarter of FY’25, which triggered an internal audit review, top-level resignations, and a forensics probe.
The bank had a consolidated net profit of ₹2,349.15 crore in the March quarter of 2023-24. The bank has made provisioning of ₹2,522 crore during the March quarter of FY25, up from ₹950 crore provisioning made in the corresponding period in FY’24.
Bank’s interest income during the quarter fell 13 per cent to ₹10,634 crore from ₹12,199 crore in the March quarter of FY’24. For the full 2024-25 fiscal, IndusInd Bank reported over 71 per cent drop in net profit to ₹2,576 crore. In FY’24, the bank had a net profit of ₹8,977 crore.
