IndusInd Bank on Tuesday clarified that contrary to media reports, it has not appointed Ernst & Young (EY) to conduct a forensic audit into a ₹600 crore discrepancy in its microfinance portfolio. The clarification follows a report by The Economic Times, which stated that EY had been roped in to conduct a second forensic audit after the bank’s statutory auditors flagged concerns under Section 143(12) of the Companies Act.
In an exchange filing, IndusInd Bank said:
“The Bank has not engaged EY for a forensic audit as reported in the news item. As part of the finalisation of accounts, the Bank’s Internal Audit Department (IAD) is conducting a review of the Bank’s MFI business to examine certain concerns which have been brought to the Bank’s attention. EY is assisting the IAD in reviewing certain records of the Bank.”
The bank added that the internal review is still ongoing, and it will continue to meet all disclosure obligations under SEBI Listing Regulations.
Earlier reports suggested that EY, which has one of India’s largest forensic practices, was appointed to determine whether the ₹600 crore accounting issue in the microfinance segment stemmed from fraud. This was reportedly in addition to a separate forensic audit by Grant Thornton Bharat into foreign exchange derivatives irregularities.
The discrepancy was flagged during statutory audit proceedings for FY25, raising corporate governance and accounting red flags.
IndusInd Bank’s clarification is aimed at quelling investor anxiety and speculation about the scale and intent of the audit process. The bank reiterated its commitment to transparency and regulatory compliance in the disclosure filed with the stock exchanges.
