ICAI may review financial statements of IndusInd Bank amid accounting discrepancies

The chartered accountants’ apex body, ICAI, may review the financial statements of IndusInd Bank, which is grappling with discrepancies in accounting estimated to be ₹2,100 crore.The private sector lender, on March 10, disclosed some discrepancies in its derivatives portfolio, which could have an adverse impact of about 2.35% of the bank’s net worth as of December 2024, as per its internal review.

Analysts peg the discrepancy at ₹

2,100 crore in absolute terms. Against this backdrop, the Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI) is likely to review the financial statements of the bank.
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”As a proactive measure, ICAI-FRRB may undertake a review of the financial statements of IndusInd Bank,” ICAI President Charanjot Singh Nanda told PTI on Thursday.FRRB conducts reviews of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing,and  Schedule II and III of the Companies Act, 2013, among others.

Also, FRRB assesses the compliance with various guidance notes on accounting and auditing, and master circulars/ directions issued by the Reserve Bank of India (RBI). Chartered accountants do most of the audit work.

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IndusInd Bank had also said 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.