Private sector lender IndusInd Bank has confirmed that the Serious Fraud Investigation Office (SFIO) has initiated an investigation under Section 212 of the Companies Act, 2013, regarding accounting concerns. The SFIO has requested specific information from the bank as part of the inquiry. IndusInd Bank stated that it is fully cooperating with the authorities and providing necessary assistance.
The bank had previously disclosed that SFIO officials had engaged with its management and were expected to formally request information related to identified accounting discrepancies. Reports indicated that the Ministry of Corporate Affairs ordered the SFIO probe following concerns raised by statutory auditors and forensic reports about accounting irregularities. In March, IndusInd Bank revealed discrepancies in its derivatives portfolio and appointed external agencies to investigate.
An internal review found that certain derivatives transactions between FY16 and FY24 were not accounted for according to prescribed guidelines, leading to the recognition of notional income over multiple years. In FY25, the bank wrote off notional profits amounting to Rs 1,959.98 crore from these transactions.
