Following the accounting discrepancies, the bank had engaged an independent professional firm to conduct a comprehensive investigation into the matter. The firm reviewed the roles and actions of key employees involved. Now the bank has announced that it will take necessary steps to hold the personnel responsible for lapses and shift their roles after independent audit confirmed incorrect accounting. The lender will take a hit of Rs. 1959.98 crore on profit as estimates by the report. 

The Firm (independent audit firm) has determined cumulative adverse accounting impact on P&L at Rs. 1959.98 crores as on 31^st March 2025, which is similar to the amount disclosed on 15^th April 2025. The Bank will appropriately reflect the resultant impact of the accounting discrepancies in the financial statements for FY 2024-25 and take measures to strengthen internal controls accordingly. The Bank has already discontinued internal derivative trades from 1^st April 2024. The Report identifies incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy.
 

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