Ban on EY Network firm in India

The Reserve Bank of India (RBI) has banned the audit firm associated with the Global Accounting network EY called SR Batliboi & Co. LLP.
SR Batliboi is a member firm of EY (Earlier known as Ernst and Young)
SR Batliboi is the first big 4 accounting firm to get banned by banking regulator. India's Central Bank banned EY for compromising the audit quality.
EY has appealed with the Reserve Bank that the decision to ban them is not right. The firm has made representations to the RBI about the unfairness of such a ban and sought a relaxation of its stance.
Central bank’s action was linked to the audit of private sector indian bank’s financial statement for the fiscal year ended March 2016 which had thrown up a big deviations in the bad loans of the bank.

An assessment done by the Central Bank for the fiscal ended March 2016, pegged the total bank bad loans at Rs 4,925.68 crore as against the Rs 748.98 crore gross bad loans reported by the Indian bank which was audited by EY, leading to a divergence of Rs 4,176.70 crore. This divergence further increased to Rs 6,335 crore in the next fiscal year.
This was also considered to be the main reason of the earlier CEO of the bank to exit the board.

India's Central Bank had said that EY was banned due to “lapses identified in a statutory audit work carried out by the firm,” without giving any details. The big four accounting firms have been targeted by the regulators and are banned in recent past.
EY particularly gained lot of mileage in last two years due to the audit rotation provisions. Analysis of the audit firm done by a Regulatory Technology company reveals the statistics on the audit assignments performed by the EY Network firm.
It also provides the information about the companies in the EY network in India. It is quite an information article which one must read.
It is one of the effective analyses on the subject of Auditors and their audits in India