White collar crime probe agency SFIO has started investigating IndusInd Bank for accounting lapses in the derivatives portfolio having financial implication of ₹1,960 crore to 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 on Wednesday.
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 investigation based on reports, special resolutions, public interest, or government requests, granting SFIO broad powers to probe financial misdeeds.
1 December 2025
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The bank on December 18 had said the RBI Master Directions on Fraud Risk Management in Commercial Banks (including Regional Rural Banks) and All India Financial Institutions dated July 15, 2024, mandate that any fraud reported to the RBI involving an amount of ₹1 crore and above shall also be reported to the SFIO under the Ministry of Corporate Affairs.
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 cumulative adverse accounting impact on profit & loss at ₹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 that accounting lapses in the derivative portfolio will have a negative impact of ₹1,979 crore on its net worth.
The bank has assessed an adverse impact (on a post-tax basis) of 2.27% to its net worth as of December 2024 on account of discrepancies relating to derivative deals.
The private sector lender reported last month accounting lapses in the derivative portfolio, estimated to have an adverse impact of approximately 2.35% of the bank's net worth as of December 2024
