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A big report on the recent derivative portfolio irregularities in Indusind Bank is going to come soon. According to information received by CNBC TV18 from sources, the bank's external auditor Price Waterhouse Coopers (PWC) may present its report in this matter to the bank's board on Friday.
What is the whole matter? The irregularities in IndusInd Bank's derivatives portfolio were revealed in early March. The bank itself admitted that there was some wrong trading in its derivative deals, due to which the bank's net worth has been affected by about 2.35%. This figure was seen as per December 2024.
What will be in the report? The PWC report will mention all the aspects related to this irregularity:- Full details of the irregularities in derivative deals and how and when the irregularity occurred. What impact did it have on the current financial health of the bank. What improvements are needed going forward Why is this report important for the bank? This report is also important because:- The Reserve Bank (RBI)'s monitoring of the bank's management has increased. RBI has also asked the CEO and his deputy to resign (until new officers are appointed)- Moody's has also warned of downgrading the bank's rating What can happen next - If the irregularities are confirmed in the report, the bank may have to make major improvements in its internal control system. Along with this, questions can also be raised on the board and top management. Overall- the truth is now going to come out on Indusind Bank's derivatives fraud.
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