IndusInd Bank Onboards Grant Thornton for Accounting Lapse Probe

According to news reports, IndusInd Bank has engaged Grant Thornton to conduct a forensic review following recent accounting discrepancies. The review aims to determine the root cause, assess compliance issues, and investigate potential fraud.

Forensic Audit to Uncover Lapses

The lender, India’s fifth-largest private bank with a $63 billion balance sheet, recently disclosed an overvaluation of its derivatives portfolio by 2.35%, amounting to $175 million. This discrepancy resulted from non-compliant internal trades and violated Reserve Bank of India (RBI) regulations. Despite this, the RBI has affirmed the bank’s strong capital position.

On Thursday, IndusInd informed stock exchanges about appointing an external firm to identify deficiencies, but it did not explicitly mention an investigation into possible fraud. However, 2 sources confirmed that Grant Thornton has been tasked with conducting an extensive forensic review, including identifying potential fraudulent transactions and internal misstatements.

Leadership Uncertainty and Regulatory Oversight

Grant Thornton will also assess accountability within the organisation and review the accounting treatment of all derivative contracts. The firm is expected to determine whether any misstatements were intentional and assign responsibility to those involved.

Meanwhile, regulatory pressure mounts on IndusInd’s leadership. Last week, reports suggested that the RBI urged the bank’s CEO and deputy to step down once replacements are identified. IndusInd, however, has strongly refuted these claims, calling them “factually incorrect.”

IndusInd Bank Share Performance 

As of March 24, 2025, at 3:20 PM, IndusInd Bank share price is trading at ₹668.00 per share, reflecting a surge of 2.75% from the previous closing price.

Conclusion

IndusInd Bank’s move to appoint Grant Thornton signals its commitment to addressing accounting irregularities. As the forensic audit progresses, its findings could have significant implications for the bank’s management and regulatory standing.

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