IndusInd Bank shares drop on report of appointing EY to probe ₹600 crore discrepancy

Meanwhile, IndusInd Bank has clarified that it has not engaged EY for an audit. The bank in a statement said that EY was instead appointed to support its internal audit department in reviewing certain records.

"As a part of the process of finalization of accounts, the Bank’s Internal Audit Department (IAD) is conducting a review of the Bank’s MFI business to examine certain concerns which have been brought to the Bank’s attention. In connection with this exercise, Bank is engaged with EY to assist the IAD in reviewing certain records of the Bank. The review by the Bank is ongoing," IndusInd Bank said in a regulatory filing.

The development comes more than a month after the bank reported that it found discrepancies in its derivatives trading.

The bank back then had said that during the internal review of processes relating to other asset and other liability accounts of the derivative portfolio, post-implementation of RBI’s circular on valuation and operation of the investment portfolio of commercial banks, the bank found discrepancies in the derivative account balances.

The estimated impact of the discrepancy was expected to be 2.35% of the net worth of the Bank, which was approximately pegged ₹1,577 crore.

However, external agency report has found ₹1,979 crore negative impact to the net worth of the bank due to the derivative discrepancies.

IndusInd Bank shares ended 4.88% higher at ₹787.65.