Reserve Bank of India has recently restricted audit firm S.R. Batliboi & Co. Llp, a member firm of EY from auditing commercial banks for a year for an interval in statutory audit, for this HDFC cancelled the appointment of the auditor.
HDFC has now appointed MSKA & Associates as its new Statutory auditor. In a regulatory filing, HDFC Bank said its board had re-appointed S.R. Batliboi but after the Reserve Bank order the decision has been reversed.
For this topic, HDFC bank in a stock exchange filing said, "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."
Earlier in the month, RBI had said lapses have been identified in a statutory audit assignment carried out by S.R. Batliboi. As a result it said it will not approve the film for carrying out statutory audit assignments in commercial banks for one year starting from 1st April 2019.