1. We have audited the accompanying Standalone Financial Statements of Indian Bank ('the Bank'), which comprise the
Balance Sheet as at March 31, 2025, the Profit and Loss Account and the Statement of Cash Flows for the year then
ended and notes to Standalone Financial Statements including a summary of significant accounting policies and
other explanatory information in which are included the returns for the year ended on that date of:
i) The Corporate Office and its Departments, Treasury Branch and 20 Indian Branches audited by us;
ii) 1972 Indian Branches (incl. GIFT City Branch) audited by respective Statutory Branch Auditors and
iii) 3 Foreign Branches audited by respective local auditors;
The Indian branches audited by us and those audited by other auditors have been selected by the Bank in accordance
with the guidelines issued to the Bank by the Reserve Bank of India (RBI). Also, incorporated in the Balance Sheet, the
Statement of Profit and Loss Account and the Statement of Cash Flows are the returns from 4443 Indian branches/
offices which have not been subjected to Audit. These unaudited branches account for 25.53% of Advances, 53.02%
of Deposits, 18.10% of Interest income and 45.24% of Interest expenses.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information required by the Banking Regulation Act, 1949 in the manner so
required for bank and are in conformity with accounting principles generally accepted in India and:
a. The Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary
particulars, is properly drawn up so as to exhibit a true and fair view of the state of affairs of the Bank as at 31st
March, 2025;
b. The Profit and Loss Account, read with the notes thereon shows a true balance of profit; and
c. The Cash Flow Statement gives a true and fair view of the cash flows for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered
Accountants of India ("the ICAI"). Our responsibilities under those Standards are further described in the Auditors'
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the
Bank in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with
ethical requirements that are relevant to our audit of the Standalone Financial Statements prepared in accordance
with the accounting principles generally accepted in India, including the applicable Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2021, as amended from time to time subject to Directions/
Guidelines issued by the Reserve Bank of India, and provisions of section 29 of the Banking Regulation Act, 1949
and circulars and guidelines issued by the Reserve Bank of India ('RBI") from time to time and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the Standalone Financial
Statements.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Standalone Financial Statements for the year ended March 31, 2025. These matters were addressed in the context
of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit
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Sr.
No.
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Key Audit Matter
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How the Key Audit Matter was addressed in our Audit
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1.
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Classification of Advances, Income Recognition,
Identification of and provisioning for non¬
performing Advances
The net advances of the Bank constitute 65.38% of
the total assets, which is the significant part of the
Standalone Financial Statements.
The Reserve Bank of India's ("RBI") guidelines on
Income recognition and asset classification ("IRAC")
prescribe the prudential norms for identification
and classification of non-performing assets ("NPA")
and the minimum provision required for such
assets.
Identification of performing and non-performing
Advances involves establishment of proper
mechanism. The Bank accounts for all the
transactions related to Advances in its Information
Technology Systems (IT Systems) which also
identifies whether the advances are performing or
non-performing, NPA classification and calculation
of provision.
The carrying value of these advances (net of
provisions) may be materially misstated if, either
individually or in aggregate, the IRAC norms are not
properly followed.
Considering the nature of the transactions,
regulatory requirements, existing business
environment, estimation/ judgement involved
in valuation of securities, it is a matter of high
importance for the intended users of the
Standalone Financial Statements and hence we
have ascertained identification and provisioning for
NPAs as a key audit matter.
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Tests of control
Assessing the design, implementation and operating
effectiveness of Key internal controls over approval,
recording and monitoring of loans, monitoring process of
overdue loans, measurement of provisions, identification
of NPA accounts and corresponding reversal of income
and assessing the reliability of management information
(including overdue reports).
Substantive tests
A sample of loan accounts that included large/stressed
advances and some other advances on sample basis was
taken in the top branches allocated to us, and in such
samples we conducted the following checks:
• The accuracy of the data input in the system for income
recognition and identification as performing or non¬
performing advances.
• In the performing advances selected, assessed
independently whether the classification was correctly
done.
• Reviewed the Financial Statements, collateral valuation
and other qualitative information available about these
parties.
• Test of details over calculation of NPA provisions and
reversal of income in line with IRAC norms.
• Checked the borrower wise NPA identification
determined by the bank to ensure compliance with RBI
guidelines.
• Checked the provisions on standard advances for
various categories of loans, to ensure compliance with
RBI norms.
• Existence and effectiveness of monitoring mechanisms
such as internal audit, concurrent audit, systems audit
etc. in monitoring and timely reporting of NPAs.
• Reliance is also placed on audit reports of other
Statutory branch auditors, which we have scrutinised
and considered relevant observations.
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2.
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Classification and Valuation of Investments,
Identification of and provisioning for Non¬
Performing Investments
• Investments include investments made by
the Bank in various Government Securities,
Bonds, Debenture, Shares, Security receipts and
other approved securities classified under the
categories, Held to maturity, Available for sale
and Held for Trade.
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Our audit approach towards Investments with reference
to the RBI Circulars / directives included the review and
testing of the design, operating effectiveness of internal
controls and substantive audit procedures in relation to
valuation, classification, identification of Non-Performing
Investments, Provisioning/ depreciation related to
Investments. In particular,
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• Investments constitute 25.80% of the Bank's
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1)
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We evaluated and understood the Bank's internal
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total assets. These are governed by the circulars
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control system to comply with relevant RBI guidelines
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and directives of the Reserve Bank of India (RBI).
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regarding valuation, classification, identification
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These directions of RBI, inter alia, cover valuation
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of Non-Performing Investments, Provisioning/
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of investments, classification of investments,
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depreciation related to investments;
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identification of non-performing investments,
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2)
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We assessed and evaluated the process adopted for
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the corresponding non-recognition of income
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collection of information from various sources for
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and provision there against.
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determining fair value of these investments;
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• The valuation of each category (type) of the
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3)
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For the selected sample of investments in hand, we
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aforesaid securities is to be done as per the
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tested accuracy and compliance with the RBI Master
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method prescribed in circulars and directives
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Circulars and directions by re-performing valuation for
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issued by the RBI which involves collection of
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each category of the security. Samples were selected
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data/ information from various sources such
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after ensuring that all the categories of investments
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as FIMMDA rates, rates quoted on BSE / NSE,
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(based on nature of security) were covered in the
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financial statements of unlisted companies
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sample;
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etc. Considering the complexities and extent of
judgement involved in the valuation, volume of
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4)
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We assessed and evaluated the process of identification
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transactions, investments on hand and degree
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of NPIs, and corresponding reversal of income and
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of regulatory focus, this has been determined as
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creation of provision;
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a Key Audit Matter.
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5)
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We carried out substantive audit procedures to re-
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Accordingly, our audit was focused on valuation
of investments, classification, identification of
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compute independently the provision to be maintained
and depreciation to be provided in accordance with
the circulars and directives of the RBI. Accordingly,
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Non-Performing Investments and provisioning
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we selected samples from the investments of each
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related to investments.
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category and tested for NPIs as per the RBI guidelines
and recomputed the provision to be maintained in
accordance with the RBI Circular for those selected
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sample of NPIs;
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6)
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We tested the mapping of investments between the
Investment application software and the financial
statement preparation software to ensure compliance
with the presentation and disclosure requirements as
per the aforesaid RBI Circular/ directions.
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Other Matters
5. a. We did not audit the financial statements / information of 1975 branches (including 3 foreign branches) included
in the standalone financial statements of the Bank whose financial statements / financial information reflect
total assets of Rs. 3,11,810.30 crores as at 31st March 2025 and total revenue of Rs. 20,628.19 crores for the
year ended on that date, as considered in the Standalone Financial Statements. These branches cover 42.07% of
advances, 40.99% of deposits and 51.71% of Non-performing assets as at 31st March 2025 and 28.77% of revenue
for the year ended 31st March 2025. The financial statements / information of these branches have been audited
by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of branches, is based solely on the report of such branch auditors.
b. The Standalone Financial Statements of the Bank for the previous year ended 31st March, 2024 were audited by
the joint auditors, one of them was predecessor audit firm and they have expressed unmodified opinion on such
Standalone Financial Statements vide report dated 06.05.2024.
Our opinion is not modified in respect of above matters.
Information Other than the Standalone Financial Statements and Auditor's Report thereon
6. The Bank's Board of Directors is responsible for the other information. The other information comprises the Corporate
Governance Report which we have obtained at the time of issue of this report (but does not include the Standalone
Financial Statements and our auditors' report thereon). The Directors' Report including annexures in annual report, if
any, thereon is expected to be made available to us after the date of this auditor's report.
Our opinion on the Standalone Financial Statements does not cover the other information and Pillar 3 disclosure
under Basel III and we do not and will not express any form of assurance / conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial
Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the Directors' Report of the Bank, including annexures in annual report, if any, thereon, if we conclude
that there is a material misstatement therein, we are required to communicate the matter to those charged with
governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
7. The Bank's Board of Directors is responsible with respect to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial performance and cash flows of the Bank in accordance
with the accounting principles generally accepted in India, including the Accounting Standards issued by ICAI, and
provisions of Section 29 of the Banking Regulation Act, 1949 and circulars and guidelines issued by the Reserve Bank
of India ('RBI') from time to time. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Bank and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair
view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, management is responsible for assessing the Bank's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the Bank's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. As required by the RBI Letter DOS.ARG.No.6270/08.91.001/2019-20 dated
March 17, 2020 (as amended), we are also responsible for expressing our opinion on whether the Bank has
adequate internal financial controls with reference to standalone financial statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the bank's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the Standalone
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and
in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit
matters.
We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
9. The standalone Balance Sheet and the standalone Profit and Loss Account have been drawn up in accordance with
Section 29 of the Banking Regulation Act, 1949;
Subject to the limitations of the audit indicated in paragraphs 5,7 & 8 above and as required by the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970/1980, and subject also to the limitations of disclosure required
therein, we report that:
a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were
necessary for the purposes of our audit and have found them to be satisfactory;
b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
c) The returns received from the offices and branches of the Bank have been found adequate for the purpose of our
audit.
10. As required by letter No. DOS.ARG.No.6270/08.91.001/2019- 20 dated March 17, 2020 on "Appointment of Statutory
Central Auditors (SCAs) in Public Sector Banks - Reporting obligations for SCAs from FY 2019-20", read with subsequent
communication dated May 19, 2020 issued by the RBI, we further report on the matters specified in paragraph 2 of
the aforesaid letter as under:
a) In our opinion, the aforesaid Standalone Financial Statements comply with the applicable Accounting Standards
issued by ICAI, to the extent they are not inconsistent with the accounting policies prescribed by the RBI.
b) There are no observations or comments on financial transactions or matters which have any adverse effect on
the functioning of the Bank.
c) As the Bank is not registered under the Companies Act , 2013 the disqualifications from being a director the bank
under sub-section (2) of section 164 of the Companies Act 2013 do not apply to the Bank.
d) There are no qualifications, reservations or adverse remarks relating to the maintenance of accounts and other
matters connected therewith.
e) Our audit report on the adequacy and operating effectiveness of the Bank's internal financial controls over
financial reporting with reference to standalone financial statements is given in Annexure A to this report. Our
report expresses an unmodified opinion on the Bank's internal financial controls over financial reporting with
reference to standalone financial statements as at 31st March 2025
11. We further report that:
a) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appears from
our examination of those books and proper returns adequate for the purposes of our audit have been received
from branches not visited by us.
b) the standalone Balance Sheet, the standalone Profit and Loss Account and the standalone Statement of Cash
Flows dealt with by this report are in agreement with the books of account and with the returns received from
the branches not visited by us.
c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the
Banking Regulation Act, 1949 have been forwarded to us and have been properly dealt with by us in preparing
this report; and
d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Statement of Cash Flows comply with the
applicable accounting standards, to the extent they are not inconsistent with the accounting policies prescribed
by RBI.
For KAILASH CHAND JAIN & CO For S. SINGHAL & CO For G BALU ASSOCIATES LLP
Chartered Accountants Chartered Accountants Chartered Accountants
FR No. 112318W FR No. 001526C FR No. 000376S/S200073
SAURABH CHOUHAN MUKESH KUMAR KHANDELWAL RAJA GOPALAN B
Partner Partner Partner
(M. No. 167453) (M. No.074661) (M. No. 217187)
UDIN:25167453BMLKTF8234 UDIN:25074661BMKOJR8226 UDIN: 25217187BMLWUK7042
For DASS GUPTA & ASSOCIATES For ARUN K AGARWAL& ASSOCIATES
Chartered Accountants Chartered Accountants
FR No. 000112N FR No. 003917N
NARESH KUMAR ARUN KUMAR AGARWAL
Partner Partner
(M. No. 082069) (M. No. 082899)
UDIN:25082069BMLXEJ7885 UDIN: 25082899BMMBRT1772
Date of Report : 03.05.2025
Place of Signature: Chennai
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