Second Forensic Audit Launched as IndusInd Bank Faces Rs. 600 Cr Income Discrepancy:

Second Forensic Audit Launched as IndusInd Bank Faces Rs. 600 Cr Income Discrepancy IndusInd Bank's board has appointed Ernst & Young (EY) to conduct a second forensic audit following the discovery of a Rs 600 crore discrepancy in the accrued interest income from the bank's microfinance portfolio. This inquiry was necessitated following the irregularity being raised during the statutory audit of the last financial year. The auditors of the bank issued a further communication under Section 143(12) of the Companies Act, 2013, and suggested that a forensic audit be undertaken to investigate the issue in detail. The forensic audit will be conducted by EY, which boasts India's biggest forensic audit practice, and will decide if the difference was the result of operational failure or fraud and who should be blamed for it. This new investigation is running parallel to an ongoing forensic audit being conducted by Grant Thornton Bharat (GTB), which is looking into irregularities in the accounting of IndusInd Bank's forex derivatives portfolio. According to sources familiar with the situation, the problem appears to be confined to the previous financial year, likely occurring during the second and third quarters. However, EY will conduct a comprehensive investigation to conclusively rule out any possibility of fraud and to understand the full extent and nature of the difference in full. The results of this audit may carry serious implications for the financial reporting and regulatory compliance of the bank.