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IndusInd Bank will be in the spotlight on March 24 after appointing Grant Thornton to conduct a forensic review of accounting lapses
IndusInd Bank Share Price
IndusInd Bank Share Price: Shares of IndusInd Bank, India’s fifth-largest private lender, were trading higher on March 24 after appointing business advisory firm Grant Thornton to conduct a forensic review of accounting lapses discovered this month. The review will also investigate potential fraud or internal misstatements, according to sources.
IndusInd Bank’s shares have dropped approximately 23.4% since March 10, when the lender revealed that its derivatives portfolio was overvalued by around 2.35%, or $175 million, due to non-compliant internal trades.
The accounting discrepancy violated Reserve Bank of India (RBI) regulations, though the central bank has assured that IndusInd remains well-capitalized.
Two sources, speaking on condition of anonymity due to the confidentiality of the matter, confirmed on March 23, 2025, that Grant Thornton had been appointed to conduct an extensive forensic review. The investigation will assess whether any fraudulent activity was involved in the transactions.
On March 20, IndusInd Bank announced that its board had decided to engage an independent professional firm to conduct a thorough probe into the discrepancies in its derivatives portfolio.
“The Board of Directors, at its meeting held today, decided to appoint an independent professional firm to conduct a comprehensive investigation to, among other things, identify the root cause of the discrepancies, assess the correctness and impact of the accounting treatment of derivative contracts as per prevailing standards, identify any lapses, and establish accountability,” the bank stated in a stock exchange filing.
The issue came to light during an internal review, which revealed inconsistencies in the derivatives portfolio. According to a company filing on March 10, these discrepancies could result in a 2.35% reduction in the bank’s net worth.
The review followed RBI’s September 2023 directives on investment portfolios, particularly regarding ‘Other Asset and Other Liability’ accounts.
A person familiar with the matter estimated the potential profit impact to be around ₹1,500 crore. “I think general reserves cannot be touched, and we’ll have to take it to the P&L,” said Sumant Kathpalia, the bank’s CEO and managing director, during an analyst call.
Alongside Grant Thornton’s forensic audit, the bank has also engaged a reputed external agency to independently validate its internal findings. Consulting firm PwC was appointed in late February and is expected to submit its report to the RBI by the end of March.
