IndusInd Bank Derivatives Accounting Gap: Grant Thornton Report
Why in the news
IndusInd Bank disclosed that an outside review traced its accounting gaps to the way internal derivatives trades were booked when they were ended early.
Key facts
- The board appointed Grant Thornton to find the root cause; it linked the issue to internal derivatives trades and early terminations, which produced notional profits.
- Cumulative adverse hit to the P&L as of March 31, 2025: about ₹1,959.98 crore.
- On April 15, 2025 the bank had shared a PwC report validating its own review.
- PwC’s view: post-tax negative effect of 2.27% on net worth as of December 2024, when net worth was ₹65,102 crore.
| Estimate | Impact | As of |
|---|---|---|
| Bank’s internal review | ₹1,580 crore | Not stated |
| PwC | ₹1,979 crore (slightly higher) | June 30, 2024 |
| Grant Thornton | ₹1,959.98 crore | March 31, 2025 |
Corrective action
- Board to fix accountability, realign roles and adjust senior management duties.
- Internal derivatives trades were discontinued from April 1, 2024.
- The impact will be shown in FY 2024-25 financial statements.
Market view
- Brokerages welcomed the impact being smaller than feared, calling it manageable.
Exam angle
- Firms named: Grant Thornton and PwC.
- Issue: derivatives accounting discrepancy.