New Delhi, May 16 -- Foreign brokerages including CLSA and Investec have downgraded their recommendations on IndusInd Bank Ltd shares after the lender flagged two more accounting issues in its internal audits.

IndusInd Bank on Thursday said its internal audit department had found Rs.674 crore to be "incorrectly recorded as interest" in its microfinance book over three quarters of fiscal 2024-25. This amount was, however, fully reversed as on 10 January, IndusInd Bank informed the stock exchanges.

The audit team also revealed Rs.595 crore worth of unsubstantiated balances in the bank's 'other assets' account, adding that these balances were set off against corresponding balances in the lender's 'other liabilities' account in January.

Th...