The independent professional firm will also assess the correctness and impact of the accounting treatment of the derivative contracts with regard to the prevailing accounting standards/ Guidance, identify any lapses and establish accountability in relation to the discrepancies identified in the bank’s derivative portfolio.
On March 10, the private bank had made a public disclosure, informing about certain discrepancies identified by the bank, in its account balances relating to its derivative portfolio.
The discrepancies observed were a part of the ongoing review by an external agency.
The bank estimates a potential adverse impact of approximately 2.35% of its net worth as of December 2024. The bank plans to absorb this impact in its Q4 FY25 or Q1 FY26 earnings.
The bank further stated that once the review is completed, it will appropriately reflect any resultant impact in its financial statements.
IndusInd Bank caters to both consumer and corporate customers. As of 31 December 2024, the bank’s distribution network included 3,063 branches/banking outlets and 2,993 onsite and offsite ATMs, as against 2,728 branches/banking outlets and 2,939 onsite and offsite ATMs as of 31 December 2023. The client base stood at 42 million as on 31 December 2024.
The private lender's standalone net profit tumbled 39.01% to Rs 1,401.28 crore while total income grew by 8.46% to Rs 15,151.01 crore in Q3 December 2024 over Q3 December 2023.
The scrip was down 0.53% to currently trade at Rs 682.15 on the BSE.