NFRA May Investigate IndusInd Bank’s Derivative Issue

The National Financial Reporting Authority (NFRA) is monitoring discrepancies in IndusInd Bank’s derivatives portfolio and may investigate the matter if necessary.

While NFRA has not confirmed an official probe, sources indicate that the regulator is assessing the situation. A senior NFRA official stated that any action would depend on the findings of a risk assessment. Meanwhile, the Institute of Chartered Accountants of India (ICAI) is expected to review IndusInd Bank’s financial statements, taking suo motu cognisance of accounting discrepancies in the lender’s forex derivative portfolio. ICAI plans to discuss the matter in its upcoming Financial Reporting Review Board meeting before deciding on further steps.

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