IndusInd Bank shares fall as EY launches second forensic audit 

IndusInd Bank shares dropped 3.82 per cent to ₹796.60 on Tuesday after reports emerged that Ernst & Young (EY) has been engaged to conduct a second forensic audit into a ₹600-crore discrepancy in the bank’s microfinance portfolio. This investigation comes on top of an ongoing forensic audit by Grant Thornton Bharat examining irregularities in the bank’s forex derivatives portfolio.

The matter surfaced during the statutory audit for the previous fiscal year, prompting auditors to issue a notification under Section 143(12) of the Companies Act 2013. The bank was subsequently directed to initiate a forensic audit to investigate the discrepancy.

In March 2025, IndusInd Bank disclosed “accounting discrepancies” in its derivatives portfolio that impacted approximately 2.35 per cent of the bank’s net worth, equivalent to ₹1,500-2,000 crore. This revelation caused the stock to crash more than 30 per cent in a single day.

Despite a recent recovery that saw the stock rally about 20 per cent over five consecutive sessions, current news has renewed investor concerns. Prior to this setback, Foreign Institutional Investors had increased their stake by 4.8 per cent in Q4 FY25 to 29.53 per cent.

The bank recently appointed Santosh Kumar as Deputy CFO effective April 18, 2025, amid ongoing management changes. Kumar will head finance and accounts functions until a full-time CFO is appointed, following former CFO Gobind Jain’s resignation citing personal reasons.

The stock exchanges sought clarification from IndusInd Bank regarding the reported second audit, but the company’s response remains pending.

Published on April 22, 2025