'Not engaged EY for forensic audit': IndusInd Bank clarifies on MFI business review; stock dives 5%

IndusInd Bank Ltd on Tuesday issued a clarification over a news report, titled "IndusInd ropes in EY to conduct another audit, to probe Rs 600 crore discrepancy in microfinance portfolio", claiming it has not engaged the global accounting firm for a forensic audit as cited in the news item.

"As a part of the process of finalization of accounts, the Bank's Internal Audit Department (IAD) is conducting a review of the Bank's MFI business to examine certain concerns which have been brought to the Bank's attention," the private lender stated.

"In connection with this exercise, the Bank is engaged with EY to assist the IAD in reviewing certain records of the Bank. The review by the Bank is ongoing," it added.

Stock-wise, IndusInd Bank plunged 4.88 per cent to close at Rs 787.65. At this price, the crisis-hit private lender's scrip has corrected 18.73 per cent on a year-to-date (YTD) basis amid accounting deviations.

The bank recently said its deposits grew by 0.4 per cent sequentially in the March 2025 quarter (Q4 FY25). Net advances declined by 5.2 per cent quarter-on-quarter (QoQ) for the same period.

Net advances stood at Rs 3,43,298 crore as of March 31, 2025, compared to Rs 3,66,889 crore as of December 31, 2024. On a yearly basis, advances grew by 1.4 per cent. Deposits for the quarter stood at Rs 3,84,793 crore as of March 31, 2025, compared to Rs 4,09,554 crore as of December 31, 2024. On a yearly basis, deposits were up 6.8 per cent.

"Retail deposits and deposits from small business customers amounted to Rs 1,85,180 crore as of March 31, 2025, as compared to Rs 1,88,730 crores as of December 31, 2024. The daily average LCR for Q4FY25 was at 118.4% and 136.2% as of March 31, 2025," the bank also said.

IndusInd Bank mentioned that its CASA Ratio improved to 37.9 per cent in the March quarter as against 34.9 per cent in December and 32.8 per cent in the March quarter of last year.