IndusInd Bank Clarifies Audit Rumours: No Forensic Audit by EY, Only Internal Review Underway

On April 22, 2025, news surfaced on a media website claiming that IndusInd Bank had engaged Ernst & Young (EY) to conduct a forensic audit following a ₹600 crore discrepancy in its microfinance portfolio. The news prompted significant attention from market participants and regulatory bodies alike.

However, IndusInd Bank was quick to issue a clarification through an official release to the stock exchanges. 

The IndusInd Bank share price was trading up by 0.31% as of 12:20 PM on April 23, 2025.

Read More: IndusInd Bank Share Price Drops 6% Amid Forensic Audit Over ₹600 Crore Discrepancy

IndusInd’s Response to Media Reports

The Bank stated unequivocally that EY has not been appointed for a forensic audit. Instead, the engagement with EY is limited to supporting the Bank’s Internal Audit Department (IAD) in reviewing specific records related to its microfinance institution (MFI) business.

This internal review is part of the standard procedure during the finalisation of the Bank’s financial accounts and is being conducted in response to certain concerns that were recently flagged internally.

The Scope of the Review

IndusInd’s Internal Audit Department is conducting a thorough evaluation of the MFI operations. The Bank has called upon EY’s expertise to assist in analysing and reviewing relevant documentation. However, this remains an internal exercise, not a third-party forensic investigation as suggested by some reports.

The Bank emphasised that the review is still in progress and reassured stakeholders of its commitment to transparency and adherence to regulatory compliance.

Compliance with SEBI Regulations

IndusInd Bank reaffirmed its ongoing compliance with disclosure norms under SEBI’s Regulation 30. The statement underscored that the Bank remains vigilant about its communication responsibilities and will continue to disclose material developments in a timely and accurate manner.

Conclusion

In an era where headlines can trigger volatility, IndusInd Bank’s prompt clarification helps curb misinformation and assures stakeholders that no external forensic audit is underway. Instead, the Bank is maintaining rigorous internal checks, partnering with EY solely to support its internal audit team in a routine review process.

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