Indusind Bank Ltd. has appointed Grant Thornton for a forensic review of accounting revocations detected earlier this month to see if fraud or internal misstatement occurred, and Reuters reported citing people of knowledge.
On Thursday, the bank announced the appointment of an independent, specialized company to investigate conflicts in its derivatives portfolio.
The lender said the independent company will conduct a comprehensive investigation to identify the root cause of the recently disclosed accounting discrepancies. The company evaluates the accuracy and impact of accounting for derived contracts with regard to general accounting standards.
The company also provides guidance, identifies raps and establishes accountability in relation to the above inconsistencies.
A Reuters report said Grant Thornton is the independent body in question and will conduct an extensive forensic review to assess evidence of fraud in the transaction. The report also said Grant Thornton will remain accountable for the allocation for lapses and will consider accounting for all derivative contracts.
On March 10th, Indusind Bank discovered a specific inconsistency in its derivative portfolio. The bank had estimated the economic impact equivalent to 2.35% of the bank’s net worth as of December 31st. This amounts to 1,500-2,000 crore.
Since then, banks have faced considerable criticism and questions about what is called contradiction.
