The Institute of Chartered Accountants of India (ICAI), the apex body for chartered accountants, is set to evaluate the financial statements of IndusInd Bank, which is currently facing significant accounting discrepancies amounting to Rs 2,100 crore.
On March 10, the private sector lender revealed discrepancies related to its derivatives portfolio, with potential adverse effects estimated at approximately 2.35 percent of the bank’s net worth as of December 2024, according to an internal review. Analysts have assessed the total discrepancy to be around Rs 2,100 crore.
Given these circumstances, the Financial Reporting Review Board (FRRB) of ICAI is expected to conduct a thorough review of the bank’s financial statements. ICAI President Charanjot Singh Nanda highlighted the proactive approach, stating, “As a proactive measure, ICAI-FRRB may undertake a review of the financial statements of IndusInd Bank.”
The FRRB’s responsibilities include assessing compliance with various accounting standards, auditing standards, and regulations outlined in Schedule II and III of the Companies Act, 2013. Additionally, the board is tasked with ensuring adherence to guidance notes on accounting and auditing, along with the directions issued by the Reserve Bank of India (RBI).
IndusInd Bank had previously indicated that the accounting issues were identified around September-October of last year. The bank provided the RBI with a preliminary update regarding the matter last week. A definitive figure regarding the discrepancies will be determined after the external agency engaged by the bank completes its report, which is expected by early April.