IndusInd Bank shares in focus amid NFRA complaint over audit discrepancies
Shares of
IndusInd Bank
will be in focus on Tuesday following reports that the National Financial Reporting Authority (NFRA) has received a complaint highlighting audit lapses related to the bank's forex derivative portfolio.
The complaint, lodged via the government's Centralised Public Grievance Redress and Monitoring System, has sparked a wider regulatory scrutiny.
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According to earlier ET reports, NFRA is consulting with the Reserve Bank of India (
RBI
) to decide whether to launch a formal probe into the bank's books.
Additionally, the Securities and Exchange Board of India (
SEBI
) and the Institute of Chartered Accountants of India (ICAI) are also examining the matter for potential regulatory violations and accounting lapses.
The complaint centres on discrepancies identified by IndusInd Bank itself during an internal review of its derivative portfolio.
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These irregularities, tied to transactions spanning over 7–8 years up to FY24, could result in a financial impact of nearly Rs 1,600 crore post-tax and Rs 2,100 crore pre-tax, with the bank earlier flagging a potential 2.35% hit on its net worth as of December 2024.
Additionally, according to a report by NDTV Profit, J Sridharan, the executive vice chairman of Bharat Financial Inclusion, has resigned with immediate effect.
Bharat Financial Inclusion
serves as the microfinance subsidiary of IndusInd Bank.
Further, two other officials responsible for handling loan data have been asked to leave. These exits come in the wake of findings that revealed significant accounting gaps in the microlending business.
IndusInd Bank Q4 results
IndusInd Bank reported a consolidated net loss of Rs 2,329 crore in its Q4FY25 versus a net profit of Rs 2,349 crore in the year ago period period amid losses in its derivatives segment.
The private lender reported net interest income of Rs 3,048 crore in Q4FY25, which was down 43% YoY versus Rs 5,376 crore reported in the year ago period.
The bank earned interest income of Rs 10,634 crore in the quarter under review, down 13% from Rs 12,199 crore reported in the corresponding quarter of the last financial year.
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IndusInd Bank share price performance
Over the past one year, IndusInd Bank's stock has declined sharply by 44.50%. The year-to-date (YTD) performance shows a fall of 17.43%, while the six-month return is down by 20.73%. In the last three months alone, the stock has dropped 22.59%, and over the past month, it has slipped 2.68%.
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: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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