The Institute of Chartered Accountants of India (ICAI) will probably review the accounts of IndusInd Bank after the lender reported accounting irregularities of Rs 2,100 crore in its derivatives book. This has raised concerns over possible financial misstatements, drawing regulatory attention.
IndusInd Bank recognized the divergence on March 10, 2025, citing that it might affect almost 2.35% of its net value as of December 2024, based on its own assessment. Financial experts estimate the bank’s exposure to this problem to be Rs 2,100 crore.
In response, ICAI’s Financial Reporting Review Board (FRRB) is expected to examine the bank’s financial records. Charanjot Singh Nanda, President of ICAI, indicated that the review is being considered a proactive measure to ensure adherence to established accounting standards and auditing norms.
The FRRB is a watchdog whose role is to scrutinize financial statements to verify their alignment with regulatory requirements. Its scrutiny of IndusInd’s reports will decide whether the bank’s accounts are in accordance with established financial reporting standards.
This is a timely review when investor sentiment in financial institutions is most crucial. Though IndusInd Bank has not responded to any of the remedial actions it might take, observers in the industry feel that the role of ICAI would be pivotal in deciding whether intervention by the regulators is necessary or not.
The unfolding situation underscores the growing focus on financial transparency and corporate governance in India’s banking sector, with stakeholders watching closely for further developments.
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