IndusInd Bank EY Audit: Private Sector Lender’s Shares Decline Over 6 Per Cent- Know Why

IndusInd Bank EY Audit: Shares of IndusInd Bank Ltd. declined over 6 per cent to trade at an intraday low of Rs 775.4 apiece on the NSE. The stock declined after reports emerged that claimed that the private sector lender has appointed EY for a forensic audit.

IndusInd Bank shares declined after the company reportedly appointed EY to undertake a forensic audit, according to a report by the Economic Times, which cited sources privy to the matter.

EY has been appointed to look into a Rs 600 crore discrepancy that is related to the interest income in the private sector lender’s microfinance portfolio. Concerns regarding the bank’s governance and accounting practices are likely to have negatively impacted investor sentiment in today’s trade.

Notably, this discrepancy was flagged earlier by IndusInd Bank during the audit for the last financial year. The auditors urged the bank to begin a forensic audit to investigate the 600 crore discrepancy.

The report added that this audit is separate from the investigation Grant Thornton Bharat is conducting related to the lender’s forex derivatives portfolio. The purpose of EY's forensic audit is to identify lapses, if any, and determine accountability for the same. The report also cited a source who claimed that the bank has roped in EY on account of ‘time concerns.’

Earlier on April 15, IndusInd Bank informed the exchanges via a filing that an internal review by the bank had estimated the impact of the discrepancies to amount to nearly 2.35 per cent of the bank’s net worth as of December 2024.

Additionally, the bank said that it had hired Price Waterhouse Coopers for an accounting review of the derivatives portfolio. The bank added that after the review it was found that the impact was 2.27 per cent which is less than what the bank itself had projected. Notably, the private sector lender estimated the impact based on its June 2024 profit and loss.

IndusInd Bank Share Price History

In a year shares of IndusInd Bank have declined nearly 47 per cent on the NSE. The private sector lender’s shares have plummeted over 17 per cent. In six months the stock has declined nearly 38 per cent and in a month the stock has climbed over 15 per cent. In five days the stock has gained over 12 per cent.

IndusInd Bank shares traded at Rs 793.25 apiece, down by 4.22 per cent on the NSE at the time of writing.