After the Reserve Bank of India (RBI) restricted audit firm S.R. Batliboi & Co. Llp, a member firm of EY, from auditing commercial banks for a year for "lapses" in a statutory audit, HDFC Bank today cancelled the appointment of the auditor.
In a regulatory filing, HDFC Bank said its board had re‐appointed S.R. Batliboi & Co, LLP as the statutory auditor of the bank for a period of three years with effect from FY 2019‐20 but after the RBI action, the decision has been reversed.
HDFC Bank has now appointed MSKA & Associates as its new statutory auditor.
"Accordingly, the Bank cannot appoint S.R.B as the Statutory Auditor of the Bank as was earlier proposed. Consequently, the Board of Directors of the Bank has today approved the appointment of MSKA & Associates, Chartered Accountants (Firm Registration No: 105047W) as the Statutory Auditors of the Bank for a period of 4 (four) years with effect from FY 2019‐20, subject to the approval of the Reserve Bank of India and the shareholders at the ensuing Annual General Meeting of the Bank," HDFC Bank said in a stock exchange filing.
Earlier in the month, RBI had said lapses have been identified in a statutory audit assignment carried out by S.R. Batliboi & Co. Llp. As a result, it said it will not approve the firm for carrying out statutory audit assignments in commercial banks for one year starting from April 1, 2019.