Mumbai based Private lender IndusInd Bank on Sunday said that a forensic audit has found a cumulative impact of Rs 1,959.98 crore on its profit and loss account, stemming from incorrect accounting of certain derivative transactions. This is the same impact reported during the declaration of external audit on 15th of April.
The disclosure follows the bank’s earlier announcement about identifying discrepancies in its treasury operations and appointing an external firm for a forensic review.
India’s fifth-largest private lender, IndusInd Bank, earlier on March 10 reported the exchanges of its finding of discrepancies in its derivative portfolio.
The lender on 17th of April also announced the appointment of Santosh Kumar as it’s Deputy Chief Financial Officer who was previously serving as the Chief Accountant at the bank and hence relieving Deputy CEO Arun Khurana from the additional Charge.
Khurana took additional charge when the then CFO of IndusInd Bank, Gobind Jain tendered his resignation in January this year.
The investigation, conducted by an independent auditor, revealed that the bank had not accurately recorded income and expenses arising from the early termination of specific structured derivative deals over previous financial years. The transactions in question related to interbank trades and were confined within the treasury division, with no direct impact on client-facing derivative operations, IndusInd Bank clarified.
“The cumulative financial impact as identified by the forensic auditor is Rs 1,959.98 crore on a notional basis,” the bank said in a stock exchange filing.
As a corrective measure, IndusInd Bank has discontinued all internal derivative transactions, strengthened its monitoring mechanisms, and taken action against employees found responsible for the lapses.
The bank has indicated that the necessary financial adjustments will be made in its accounts for the financial year ending March 31, 2025 (FY2024–25).
