India News | Accounting Lapses in Derivatives Portfolio to Cost IndusInd Bank Rs 1,960 Crore in FY25

New Delhi, Apr 27 (PTI) IndusInd Bank on Sunday said accounting lapses in the derivative portfolio will cost the bank Rs 1,960 crore in FY25.

A bank-appointed external auditor has determined cumulative adverse accounting impact on P&L at Rs 1,959.98 crore as on March 31, which is similar to the amount disclosed on April 15, IndusInd Bank said in a regulatory filing.

Also Read | Madhya Pradesh: Cheetah Nirva Gives Birth to 5 Cubs at Kuno National Park, Announces CM Mohan Yadav (Watch Video).

The bank will appropriately reflect the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and take measures to strengthen internal controls accordingly, it said.

The bank has already discontinued internal derivative trades from April 1, 2024, it said.

Also Read | Only One Pakistani Citizen Stays in Assam After Being Married to Citizen of Tinsukia District: CM Himanta Biswa Sarma.

"The report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy," the bank said.

The report also examined the roles and actions of key employees in this context, it said.

The board is taking necessary steps to fix accountability of the persons responsible for these lapses and realign roles and responsibilities of senior management, it added.

On April 15, IndusInd Bank disclosed the basis report of another external agency that accounting lapses in the derivative portfolio will have a negative impact of Rs 1,979 crore on its net worth.

The bank has assessed an adverse impact (on a post-tax basis) of 2.27 per cent to its net worth as of December 2024 on account of discrepancies relating to derivative deals.

The private sector lender reported last month the accounting lapses in the derivative portfolio estimated to have an adverse impact of approximately 2.35 per cent of the bank's net worth as of December 2024.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)