ICAI May Review IndusInd Bank's Financial Statements Over Accounting Discrepancies

The FRRB evaluates compliance with various guidance notes on accounting and auditing, as well as master circulars and directions issued by the Reserve Bank of India

In response, the Financial Reporting Review Board of ICAI is expected to assess the bank's financial statements

Source : JustDial

The Institute of Chartered Accountants of India (ICAI), the apex body for chartered accountants, may review the financial statements of IndusInd Bank, which is facing accounting discrepancies amounting to Rs 2,100 crore.

On March 10, the private sector lender revealed issues in its derivatives portfolio, which could negatively affect approximately 2.35 per cent of the bank's net worth as of December 2024, according to its internal review. Analysts estimate the discrepancy to be around Rs 2,100 crore in absolute terms.

In response, the Financial Reporting Review Board (FRRB) of ICAI is expected to assess the bank's financial statements.

"As a proactive measure, ICAI-FRRB may undertake a review of the financial statements of IndusInd Bank," ICAI President Charanjot Singh Nanda told the news agency PTI on Thursday.

Compliance With Various Guidance

The Financial Reporting Review Board (FRRB) reviews the financial statements of companies to ensure compliance with Accounting Standards, Standards on Auditing, and Schedule II and III of the Companies Act, 2013, among other regulations.

Additionally, the FRRB evaluates compliance with various guidance notes on accounting and auditing, as well as master circulars and directions issued by the Reserve Bank of India (RBI). Chartered accountants typically handle the majority of audit work.

IndusInd Bank also stated that the accounting issue was identified around September-October of last year, and the bank provided a preliminary update to the RBI last week.

The final discrepancy figure will be determined once the external agency appointed by the bank completes its report, expected by early April.

Meanwhile, IndusInd Bank CEO and Managing Director Sumant Kathpalia stated that the accounting issue was identified around September-October of last year, and the bank provided a preliminary update to the RBI last week. The final figure will be determined once the external agency appointed by the bank completes its report, which is expected by early April.