The Institute of Charterred Livestants of India (ICAI) will probably examine the Books of Industry Bank after accounting differences which were reported by the bank in its portfolio of derivatives earlier this week. ICAI President, Charanjot Singh Nanda, told The Economic Times: “As a proactive measure, the ICAI FRRB REVIEW BOARD BOARD (FRRB) can examine the relevant financial statements of the Industry Bank.”
Nanda said that in the event that the FRRB determines that the bank’s financial statements do not meet the standards required to be “true and just”, they have the power to degenerate the case to the ICAI discipline committee for potential action against the auditors involved.
Monday, Industry Bank said that the differences in its derivative portfolio can cause a decrease of approximately 2.35% in its net value in December 2024. The financial impact is estimated at around 1,600 overturns after taxes and approximately RS 2,100 drinks before taxes.
These differences were discovered during an internal examination of the bank processes concerning other assets and passive accounts in its derivative portfolio. These transactions have extended during seven to eight years until the end of fiscal year.
Business today could not verify the relationship with ICAI.
Industry Bank tried to respond to the concerns of the accounting gap on Tuesday, reassuring investors he has adequate reserves and capital to solve the problem. Despite this, the action has dropped by around 30% since the announcement, which has submitted concerns among investors.
The shares of the industrial bank were placed under the additional short -term surveillance measure (ASM) – Stage 1 by the NSE due to a drop of almost 30% of its market value. The decision was made on March 13.
On Thursday, Actions Industrie Bank closed at Rs 672.65 on the NSE, reflecting a decrease of Rs 12.05 or 1.76%.
Action notes
After the revelation, several brokerage houses lowered their rating on the stock and reduces target prices due to an accounting error in the Forex derivative portfolio of the bank. This resulted in a potential post-tax impact of RS 15.8 billion, or 2.35% of the bank’s net value, which aroused concerns about governance and predictability of profits.
ICICI SECURITIES has highlighted the low internal controls, declaring that the impact should affect the declaration of profits and losses, resulting in the fourth quarter of the 2025.
Nuvama has also lowered its rating on Industry Bank from “Hold” to “reduce” and decreased its target price to RS 750 due to credibility problems resulting from various negative events, such as the CFO resignation, the extension of the abbreviated mandate of the CEO and the brand derived from Forex. The brokerage house provides current profits.
Conversely, Clsa, a world brokerage company, has adopted a different opinion, now a note of “outperformance” and setting a target price of RS 900, which is 31% higher than the closing price of the day before.
