The Exchange has sought clarification from Indusind Bank Limited with respect to recent news item captioned IndusInd ropes in EY to conduct another audit, to probe Rs 600cr discrepancy in microfinance portfolio. The response from the Company is awaited.
INDUSINDBK · price
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On the reaction day the stock moved 5.5 pts less than Nifty Midcap 150 and 5.5 pts less than its Private Sector Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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The stock exchange (NSE) has asked IndusInd Bank to respond to a recent news report stating that the bank has hired EY (Ernst & Young) to conduct another audit probing a Rs 600 crore discrepancy in its microfinance portfolio. The bank's reply is still awaited. This follows earlier concerns about internal controls in the bank's microfinance business, which has been under stress. The size of the alleged discrepancy is significant relative to the segment and could point to potential misclassification or accounting issues in loan books.
This is a negative overhang for shareholders. Uncertainty around the Rs 600 crore discrepancy and the appointment of a second auditor raise concerns about governance and asset quality, and may keep the stock under pressure until the company clarifies the matter.