IndusInd Bank Clarifies: EY Assisting in Review, Not Forensic Audit - Here's What Bank Said?

IndusInd Bank News: IndusInd Bank has issued a clarification in response to recent media reports suggesting that the bank has engaged EY (Ernst & Young) for a forensic audit. The bank firmly stated that no such audit has been initiated.

In an official statement, IndusInd Bank said, “We would like to clarify that the Bank has not engaged EY for a forensic audit as reported in the news item."

What Bank Said?

The bank explained that its Internal Audit Department (IAD) is currently conducting a review of its Microfinance (MFI) business after certain concerns were brought to light. EY has been brought in to assist with this internal review process, but not in a forensic audit capacity.

“As a part of the process of finalisation of accounts, the Bank’s Internal Audit Department (IAD) is conducting a review of the Bank’s MFI business to examine certain concerns which have been brought to the Bank’s attention,” the statement continued.

“In connection with this exercise, the Bank is engaged with EY to assist the IAD in reviewing certain records of the Bank. The review by the Bank is ongoing."

IndusInd Bank further emphasised its commitment to transparency and regulatory compliance.

Also Read: Closing Bell: Sensex and Nifty 50 Pause After Monday's Rally; Markets Close Flat - IndusInd Bank Tops Losers

“We are conscious of our disclosure obligations under Regulation 30 of the Listing Regulations and shall continue to comply with the same.”

IndusInd Bank Share Price

Shares of IndusInd Bank fell sharply on Tuesday, dropping as much as 6.3% during the day to hit an intraday low of Rs 775.40. 

The stock finally closed at Rs 787.65, down Rs 40.40 or 4.88% from the previous close of Rs 828.05. It had opened the day at Rs 793.45, touched a high of Rs 808.00, and then slid amid growing concerns over a reported Rs 600 crore discrepancy in the bank’s microfinance portfolio.

The pressure on the stock intensified after reports surfaced suggesting the bank had initiated a second forensic audit and brought in global consulting firm EY to review the issue—though the bank later clarified that EY was only assisting in an internal review, not a formal forensic audit.