PwC Submits Report on IndusInd Bank’s Accounting Lapses, Grant Thornton Still Digging

IndusInd Bank’s management is studying a draft report submitted to it by the professional services giant, PwC, on the derivatives portfolio accounting lapses of the lender. The study conducted by the professional services firm is not detailed as it has neither examined the timeline and background of the issue, and nor assigned any responsibility, the Economic Times reported, citing sources. 

Following the discovery of some accounting-related discrepancies with the bank’s derivatives portfolio, the professional services firm was hired by the bank in October last year to assess the issues.

The bank, however, said that it hasn’t received any report from external agencies tasked with reviewing the discrepancies, the ET reported. 

Also Read: IndusInd Bank Hit by Rs 2,100 Crore Accounting Lapse, Says Has Enough Reserves to Absorb Impact

Apart from PwC, professional consultancy firm Grant Thornton Bharat is also probing the accounting discrepancies to find the root cause of lapses and measures to fix them 

The accounting lapses first came to light in October last year, but the discrepancies were made public in March this year in an exchange filing by the lender. In the statement, the lender also highlighted that the accounting lapses in its derivatives portfolio could adversely impact nearly 2.35% of the bank’s net worth as of the quarter ending in December 2024. 

“...We started observing discrepancies in our (derivatives) business in October, and then we hired an external agency to review our business. That is why we are comfortable that by March end or early April, we (external agency report) should be able to identify the gaps,” IndusInd Bank CEO and MD Sumant Kathpalia had said in a post earnings call. 

In the recently released fourth quarter results for the financial year 2024-25, the bank reported a 5.2% decrease in loan growth and flat deposit expansion compared to Q3. Following the disclosure of accounting lapses, it's not just the quarterly earnings that have suffered, the share price has also nosedived nearly 25%.