ICAI to Scrutinize IndusInd Bank's Financial Discrepancies
The Institute of Chartered Accountants of India (ICAI) will examine IndusInd Bank's financial statements for 2023-24 and 2024-25 due to recent fraud-related issues. The bank has faced significant lapses, including a Rs 1,979 crore discrepancy in its derivative portfolio and a Rs 674 crore misrecorded interest from microfinance. Additionally, five officials have been barred from securities markets over insider trading allegations.
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The Institute of Chartered Accountants of India (ICAI) is set to undertake a thorough examination of IndusInd Bank's financial statements for the fiscal years 2023-24 and 2024-25, following recent financial discrepancies. This decision was reached during a Financial Reporting Review Board (FRRB) meeting, according to ICAI President Charanjot Singh Nanda.
The FRRB conducts in-depth reviews to ensure companies comply with Accounting Standards, the Companies Act, and guidelines from the Reserve Bank of India. IndusInd Bank disclosed a Rs 1,979 crore derivative trade error and a Rs 674 crore misrecorded interest from its microfinance operations earlier this year.
Moreover, the bank discovered Rs 595 crore in "unsubstantiated balances" on its balance sheet. In a related development, markets regulator Sebi has barred former CEO Sumant Kathpalia and four other senior executives from the securities markets amid insider trading allegations.
(With inputs from agencies.)
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