IndusInd Bank slides 6% on reports of EY probe into ₹600 crore discrepancy

IndusInd Bank share price today: Shares of beleaguered IndusInd Bank slipped another 6 per cent in Tuesday's intraday trade amid reports that the lender has launched a second forensic audit to investigate a ₹600 crore discrepancy in its microfinance portfolio.

 

IndusInd Bank's stock fell as much as 6.3 per cent during the day to ₹775.4 per share. The stock trimmed some losses to trade 3.4 per cent lower at ₹799 apiece, compared to a 0.40 per cent advance in Nifty50 as of 10:45 AM. 

 

Shares of the company snapped their five-day rally on Tuesday. Last month, the stock nosedived after noting the discrepancies in its derivatives portfolio. The stock has fallen 16.6 per cent this year, compared to a 2.2 per cent advance in the benchmark Nifty50.  

 

 

EY probe into microfinance portfolio 

The stock came under pressure on media reports that the lender roped in EY to carry out a second forensic audit to investigate a ₹600 crore discrepancy in its microfinance portfolio. 

 

The issue was flagged during the ongoing statutory audit for the last financial year, prompting the auditors to issue an additional communication under Section 143(12) of the Companies Act 2013, Economic Times reported, quoting sources. The report showed that the discrepancy appears to have arisen during the second or third quarter of the previous fiscal year and is not believed to span multiple years. 

 

The auditors have asked the lender to initiate a forensic audit into the ₹600 crore discrepancy, with EY tasked to investigate potential lapses and fix accountability.  

 

Derivatives discrepancies

 

The latest report comes after IndusInd Bank said that an external agency — PwC — appointed to validate the findings of its internal review has identified discrepancies in its derivatives portfolio and estimated a negative impact of ₹1,979 crore as of June 30, 2024. Based on the external agency’s report, the bank said that the discrepancies would have an adverse post-tax impact of 2.27 per cent on its net worth as of December 2024. In the October-December quarter (Q3) of 2024-25 (FY25), the bank’s net worth was ₹65,102 crore.

 

Previously, on March 10, the bank had disclosed to the exchanges that in an internal review, it had found discrepancies in its derivatives portfolio, which would have an adverse impact of 2.35 per cent on its net worth as of December 2024, or roughly ₹1,530 crore. 

 

Q4 updates

 

In the fourth quarter, the bank's net advances declined 5.2 per cent quarter-on-quarter (Q-o-Q) to ₹3,47,933 crore as compared to ₹3,66,889 crore. On a year-on-year (Y-o-Y) basis, net advances increased 1.4 per cent. 

 

The net advances growth for corporate banking was at -4.9 per cent Y-o-Y and -15.1 per cent Q-o-Q, and consumer businesses were at 6.3 per cent Y-o-Y and 3.4 per cent Q-o-Q. The bank's deposits grew 0.4 per cent Q-o-Q to ₹4,11,140 crore in Q4FY25 as compared to ₹4,09,554 crore a year ago. On a Y-o-Y basis, the deposits grew 6.8 per cent.

 

Its current account savings account (CASA) ratio for the quarter under review stood at 32.8 per cent as compared to 37.9 per cent a year ago. The daily average liquidity coverage ratio (LCR) for Q4FY25 was at 118.4 per cent and 136.2 per cent as at March 31, 2025.