INDUSINDBKNSEIndusInd Bank Limited· BanksCriticalNegative
Announced Tue, 22 Apr · 16:03 IST

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 attached.

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INDUSINDBK · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

NSE asked IndusInd Bank to clarify a news report claiming it hired EY for a forensic audit to investigate a Rs 600 crore discrepancy in its microfinance (MFI) portfolio. The bank clarified that EY was NOT appointed for a forensic audit; rather, the bank's own Internal Audit Department (IAD) is conducting a review of the MFI business to examine certain concerns that were brought to its attention. EY is only assisting the IAD by reviewing certain records. The review is still ongoing. The bank confirmed it will continue to comply with its disclosure obligations under SEBI's Listing Regulations.

Likely market impact

While the bank denied the 'forensic audit' label, it indirectly acknowledged there are concerns worth reviewing in its microfinance portfolio, which could weigh on investor sentiment. The actual nature and scale of any discrepancy remain unclear until the review is completed, keeping uncertainty around the stock in the near term.