IndusInd Bank disclosed in an exchange filing that the Serious Fraud Investigation Office (SFIO), a white-collar crime probe agency, has initiated an investigation into the bank for accounting lapses in its derivatives portfolio, which has a financial implication of Rs 1,960 crore for the bank.
“We hereby inform that the bank has received a letter dated December 23, 2025, from SFIO, regarding an investigation into the affairs of IndusInd Bank Ltd under Section 212 of the Companies Act, 2013, seeking relevant information,” the bank said in a regulatory filing.
Regulations on SFIO investigation
Section 212 of the Companies Act, 2013, empowers the central government to assign complex corporate fraud investigations to the Serious Fraud Investigation Office (SFIO), allowing for investigations based on reports, special resolutions, public interest, or government requests. This grants the SFIO broad powers to probe financial misdeeds.
The bank, on December 18, had said the RBI Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions dated July 15, 2024, mandate that any fraud reported to the RBI involving an amount of Rs 1 crore and above shall also be reported to the SFIO under the Ministry of Corporate Affairs.
What is the matter?
Accordingly, the bank said, matters relating to accounting of internal derivative trades, certain unsubstantiated balances in ‘other assets’ and ‘other liabilities’ accounts of the bank and micro finance interest income/fee income were reported to SFIO on June 2, 2025.
The external auditor had, in April, pointed out a cumulative adverse accounting impact on profit & loss at Rs 1,959.98 crore as on March 31, 2025, due to accounting discrepancies in its derivatives portfolio.
On April 15, IndusInd Bank disclosed the basis report of another external agency, stating that accounting lapses in its derivative portfolio will have a negative impact of Rs 1,979 crore on its net worth.
The bank has assessed an adverse impact (on a post-tax basis) of 2.27% on its net worth as of December 2024, due to discrepancies related to derivative deals.
The private sector lender reported accounting lapses in its derivative portfolio last month, estimated to have an adverse impact of approximately 2.35 per cent of the bank’s net worth as of December 2024.
