IndusInd Bank's Stock Tumbles Amid Audit Controversy

Shares of IndusInd Bank fell almost 5% following reports of EY being tasked with auditing a Rs 600 crore discrepancy in their microfinance business. The bank later clarified it has not engaged EY for a forensic audit but to assist its Internal Audit Department in reviewing the microfinance portfolio.

Shares of IndusInd Bank saw a nearly 5% decline on Tuesday, triggered by reports that the bank has enlisted financial services firm EY to conduct an audit concerning a Rs 600 crore discrepancy in its microfinance portfolio.

The bank's stock plummeted 4.88% to Rs 787.65 on the BSE, with an intraday low reaching Rs 776.15, marking a 6.26% drop. At the NSE, the shares dipped 4.91%, selling at Rs 787.50.

Amid these developments, IndusInd Bank issued a clarification stating that EY has not been engaged for a forensic audit, but rather to aid its Internal Audit Department in reviewing records related to the microfinance sector as part of its account finalization process. This ongoing review aims to address some raised concerns.

(With inputs from agencies.)