IndusInd Bank on Tuesday received a letter from the Serious Fraud Investigation Office (SFIO) seeking information as part of an investigation into accounting irregularities linked to internal derivative trades, certain unsubstantiated balances under “other assets” and “other liabilities”, and the recognition of microfinance interest and fee income.
The bank said it had earlier informed exchanges that the SFIO had interacted with its officials and that a written communication seeking specific details was awaited. “The Bank continues to give full cooperation and support to the law enforcement agencies,” it said in the exchange filing on Wednesday.
Derivatives and Notional Profits
The probe follows disclosures made in March, when an internal review flagged accounting discrepancies in the derivatives portfolio. The bank later reversed Rs 1,959.98 crore of accumulated notional profits arising from internal derivatives transactions carried out between FY16 and FY24.
Governance Fallout
IndusInd Bank also set off Rs 595 crore of unsubstantiated balances under “other assets” and “other liabilities”. Separately, errors in income recognition in the microfinance portfolio led to reversals and higher provisions, contributing to a net loss of Rs 2,329 crore in Q4 FY25.