MONEY
ICAI likely to review financial statements of misaccounting-hit IndusInd Bank
- IBJ Bureau
- Mar 14, 2025
Chartered accountants’ apex body Institute of Chartered Accountants of India (ICAI) may review the financial statements of IndusInd Bank, which is grappling with discrepancies in accounting to the tune of Rs 2,100 crore.
On March 10, the private sector lender had disclosed some discrepancies in its derivatives portfolio, which could have an adverse impact of about 2.35 per cent of the bank’s net worth as of December 2024, according to its internal review.
Analysts peg the discrepancy at Rs 2,100 crore in absolute terms.
Against this backdrop, the Financial Reporting Review Board (FRRB) of the ICAI is likely to review the bank’s financial statements.
“As a proactive measure, ICAI-FRRB may undertake a review of the financial statements of IndusInd Bank,” ICAI President Charanjot Singh Nanda told the PTI on Thursday.
FRRB conducts the review of financial statements of companies to assess compliance with the Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others.
Besides, the FRRB assesses compliance with various guidance notes on accounting and auditing and master circulars and directions issued by the Reserve Bank of India.
IndusInd Bank had also said that the accounting lapse was noted around September-October last year, and the bank gave a preliminary update to the RBI about this last week.
The final figure will be known after the external agency, which the bank has appointed, finalises its report by early April.
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