IndusInd Bank’s accounting lapses in its derivative portfolio will have a negative impact of Rs 1,979 crore, according to a report from an external agency tasked to assess the loss.

The impact represents 2.27% of the private sector bank’s net worth as of December 2024. This is slightly lower than the bank’s earlier internal review  estimate of an adverse impact of approximately 2.35% on its net worth.

The bank had appointed external agency PwC to assess the impact on its balance sheet, lapses at various levels and also to suggest remedial action.

In a regulatory filing, the lender said the financial implications of this derivatives issue will be reflected in its FY25 financial statements. It will continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the bank," the lender added.

IndusInd Bank's board has also hired Grant Thornton to conduct a forensic audit into accounting lapses. 

As per the mandate, Grant Thornton would conduct a comprehensive investigation to identify the root cause of the discrepancies and assess the accuracy and impact of the derivative contracts’ accounting treatment against established standards. 

Additionally, the firm’s investigation will identify any lapses and establish accountability in the case.