IndusInd Bank Faces Scrutiny as Shares Drop 6% Amid Audits

On April 22, 2025,

k’s shares fell 6% following reports of a second forensic audit by EY into a Rs 600 crore discrepancy in its microfinance portfolio’s interest income, flagged during the statutory audit. EY’s investigation will probe operational lapses, potential fraud, and accountability, running parallel to Grant Thornton Bharat’s ongoing audit of irregularities in the bank’s forex derivatives accounting. Earlier, PwC’s review of the derivatives portfolio estimated potential losses at Rs 1,979 crore, up from an initial Rs 1,600 crore, representing 3.1% of the bank’s net worth as of June 2024. PwC’s report included significant disclaimers, raising concerns about governance. Since disclosing the derivatives issues on March 10, the stock has declined 11%, though it rebounded 16% in the last five sessions due to the bank’s proactive measures. In a corporate restructuring move, IndusInd promoted Santosh Kumar to Deputy CFO, replacing interim CFO Arun Khurana, ahead of its Q4 earnings. Investors remain cautious as the bank navigates these challenges, with market sentiment hinging on audit outcomes and regulatory clarity.