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.

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.