HDFC Bank has dropped the firm of S.R. Batliboi from its panel of auditors following the Reserve Bank of India’s (RBI) refusal to approve the appointment and has, instead, appointed MSKA and Associates as their Statutory Auditors, the bank said on Friday.
HDFC Bank said in a stock exchange filing that it has appointed MSKA and Associates for a period of four years with effect from the financial year 2019-20, subject to the approval of the RBI and company shareholders.
“The Board of Directors of the Bank had at their meeting held on March 7, 2019, resolved to re-appoint S.R. Batliboi and Co, LLP as the Statutory Auditor of the Bank for a period of three years with effect from FY 2019-20, subject to the approval of the Reserve Bank of India and the shareholders,” it said.
“Subsequently, the RBI in terms of its Enforcement Action Framework had decided not to approve S.R.B. for carrying out statutory audit assignments in commercial banks for one year starting from April 1, 2019, on account of lapses identified in a statutory audit assignment carried out by S.R.B.
“Accordingly, the Bank cannot appoint S.R.B as the Statutory Auditor of the Bank as was earlier proposed, the Bank informed,” the filing added.
Earlier this month, the RBI barred auditor S.R. Batliboi from handling bank audits in fiscal 2019-20. S.R. Batliboi is an affiliate of EY, one of the big four audit firms in India. The company had audited accounts of the financiall beleagured IL&FS.
Besides, the firm is also the auditor of Interglobe Aviation, the owner of India’s largest airline IndiGo, South Indian Bank and Aavas Financiers.