IndusInd Bank News: Why did the share price suddenly fall today? A big update has arrived

Private sector bank IndusInd Bank shares fell by about 5% during early trading on Tuesday. A recent update has come out regarding the bank, after which the stock is witnessing a sharp decline. IndusInd Bank has assigned EY the responsibility of conducting a second forensic audit to investigate the irregularities of ₹ 600 crore in its microfinance portfolio.

This irregularity came to light during the audit of the previous financial year, in which problems were found regarding interest income. A media report quoted sources as saying that auditors have been asked to start investigating this irregularity of the bank under the Companies Act 2013.

What will EY investigate now?
EY will investigate whether any mistake was made or fraud was committed. This audit is different from another investigation being conducted by Grant Thornton Bharat (GTB) to investigate the irregularities in the forex derivatives portfolio of IndusInd Bank. This problem may occur for the bank in the second and third quarters of the previous financial year. The report said that EY was given this responsibility due to lack of time, as GTB's investigation was to be completed by the end of April. What came out in PwC's report? EY's associate company SR Batliboy has previously been the auditor of the bank and in March 2024, EY helped in reviewing the derivatives portfolio of the bank. On April 15, the bank said that PwC estimated a potential loss of ₹ 1,979 crore in the derivatives portfolio, which was higher than the earlier estimate of ₹ 1,600 crore. However, there were some shortcomings in the PwC report. The bank said that by December 2024, this loss had an impact of 2.27% on net assets. Recently, the bank's deputy CEO Arun Khurana resigned from the post of CFO. In March, the bank had reported that a loss of ₹ 1,500 crore was caused by irregularities in Foreign Currency Hedging, due to which the stock saw a sharp decline. Santosh Kumar will hold this responsibility till the appointment of a new CFO by the bank. IndusInd Bank Share: After a sharp decline in initial operations, the stock saw some improvement from the lower levels. In the last one month, this stock is up about 20%. At the same time, it has seen a decline of 37% in the 6-month period. The stock has fallen 45% in the last one year and 17% so far this year. IndusInd Bank's 52-week high is Rs 1550 per share and 52-week low is Rs 606 per share. 

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