Concurrent audit findings: a five-year view across the public-sector banking panel.

Concurrent audit of bank branches is, at its core, a real-time internal control review. The objective is to identify deviations as they occur — not after the year-end statutory audit has been completed and accounts have been finalised. Over five years of concurrent audit mandates across public sector bank branches, APRA has observed a consistent set of recurring findings.

Credit disbursement process deviations — particularly in the MSME and agriculture segments — remain the most common finding category. Branches under disbursement pressure frequently process drawdowns before all post-sanction conditions are fulfilled. The statutory auditor discovers this months later; the concurrent auditor catches it in the same month.

KYC and AML compliance has improved significantly since the RBI's 2022 master direction, but gaps persist in periodic KYC update for dormant accounts and in beneficial ownership verification for corporate accounts. These are high-regulatory-risk findings that branch management tends to deprioritise against disbursement targets.

The remediation that works: concurrent auditors who have standing access to the branch CBS system (not just report-based access), a direct reporting line to the internal audit department at head office, and a structured escalation protocol for findings above a threshold severity. Concurrent audit reports that go to the branch manager first — and may be moderated before reaching internal audit — consistently show lower finding rates and higher re-occurrence of the same issues.

What this means for your business

This briefing is based on current regulatory positions as of 28 April 2026. Laws and regulatory positions change frequently. Before acting on any information in this publication, we strongly recommend consulting with a qualified partner who can assess your specific facts and circumstances. Contact our Sector Briefing team at info@aprafirm.com or 0124-4477824/825.