US-based auditor PwC has submitted its report to IndusInd Bank’s board after auditing the lender’s books amid suspected accounting discrepancies in its derivatives portfolio, sources told Zee Business.
The Mumbai-based private sector bank, which had hired accounting firms PwC and UK-based Grant Thornton to investigate the matter, awaited the British firm’s report on the matter, according to the sources.
The report contains key findings related to suspected accounting irregularities, they added.
The bank’s board will study the findings of the PwC and plan further course of action.
On Wedesday, IndusInd Bank shares ended higher by Rs 19.7, or 2.9 per cent, at Rs 702.4 apiece on BSE.
According to an estimate, accounting discrepancies to the tune of Rs 2,100 crore may have impacted 2.35 per cent of the bank’s net worth.
Earlier, the Reserve Bank of India (RBI) directed the IndusInd Bank board and management to take remedial action within the March quarter itself after making required disclosures to stakeholders. The banking regulator said that IndusInd’s financial condition remains stable and is being closely monitored. Read more on this here
On March 10, the lender disclosed certain discrepancies it found in its account balances relating to its derivatives portfolio.
After that development, US-based rating agency Moody’s placed IndusInd Bank’s baseline credit assessment—or an evaluation of a company’s creditworthiness based entirely on its financial situation in isolation—under review for a possible downgrade.
IndusInd Bank Share Price: Nifty50, Nifty Bank stock is down 27.5% YTD
As of April 2, the stock—part of the Nifty50 and Nifty Bank indices—has lost 27.5 per cent of its value so far this year, sharply underperforming a decline of 1.7 per cent and a rise of 0.6 per cent in the headline and banking indices, respectively.
ALSO READ: IndusInd Bank decides to appoint professional firm for complete investigation
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