IndusInd Bank Hires External Agency for Derivative Portfolio Investigation
Board’s Decision and Clarification
IndusInd Bank’s board has made the decision to bring in an external agency to conduct a thorough investigation into discrepancies found in its derivative portfolio.
Ongoing Review
- On March 10, the bank revealed that an external agency was reviewing certain discrepancies in its account balances related to derivative transactions.
- The bank stated that any resulting impact would be accurately reflected in its financial statements once the review is complete.
Independent Professional Firm Appointment
During its meeting, the board approved the appointment of an independent professional firm to carry out a comprehensive investigation. The investigation will focus on:
- Determining the root cause of the discrepancies
- Assessing the accuracy and impact of the accounting treatment of derivative contracts according to current accounting standards
- Identifying any lapses
- Establishing accountability
Clarification on Media Reports
In the meantime, the bank has released a clarification denying media reports that the central bank has requested an early replacement of the bank’s CEO and deputy CEO.
