IndusInd Bank Shares Plunge 5% on Audit News

New Delhi, Apr 22 (PTI) Shares of IndusInd Bank on Tuesday declined nearly 5 per cent amid reports that the firm has roped in EY to conduct another audit to probe Rs 600 crore discrepancy in microfinance portfolio.

The stock tanked 4.88 per cent to Rs 787.65 on the BSE. During the day, it slumped 6.26 per cent to Rs 776.15.

At the NSE, it dropped 4.91 per cent to Rs 787.50.

Earlier in the day, the BSE sought clarification from IndusInd Bank with reference to news that "IndusInd ropes in EY to conduct another audit, to probe Rs 600 cr discrepancy in microfinance portfolio".

Later, in a clarification IndusInd Bank said that the Bank has not engaged EY for a forensic audit as reported in the news item.

IndusInd Bank on Tuesday said it has engaged EY to assist the bank's Internal Audit Department (IAD) to review concerns related to microfinance (MFI) business.

As a part of the process of finalisation of accounts, the bank's IAD is conducting a review of the bank's MFI business to examine certain concerns which have been brought to the bank's attention, IndusInd Bank said in a regulatory filing.

In connection with this exercise, bank is engaged with EY to assist the IAD in reviewing certain records of the bank, it said.

The review by the bank is ongoing, it added.