Crime Today News
An external agency appointed by IndusInd Bank to assess the root cause of discrepancies found in the lender’s derivatives portfolio has confirmed that the bank engaged in incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, the bank said.
“The Report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy. The Report also examined the roles and actions of key employees in this context. The Board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,” the lender said in an exchange filing.
According to sources, the lender had appointed Grant Thornton to conduct the root cause analysis of discrepancies in its derivatives portfolio. The firm has determined cumulative adverse accounting impact of Rs 1,956 crore as on March 31, which is similar to the amount estimated by PwC in an earlier probe to assess the financial impact due to the discrepancies.
Separately, the lender had also disclosed earlier this week that its internal audit department (IAD), along with Ernst & Young, is conducting a review of the bank’s microfinance business (MFI) to examine certain concerns which were brought to the management’s attention. The bank’s micro loan book stood at ₹32,564 crore as on December end, constituting 9 per cent of overall advances.
Published on April 27, 2025
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