This development is part of a broader inquiry into accounting irregularities that first came to light during the audit of the bank’s financial results for the quarter and year ended March 2025.
“In furtherance to our intimation dated December 18, 2025, wherein we had informed that 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 the Serious Fraud Investigation Office (“SFIO”), Ministry of Corporate Affairs, on June 2, 2025. We had also mentioned that the SFIO had telephonic conversation with Bank official and a written communication was awaited,” the bank said in an exchange filing.
“In this regard, 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 Limited u/s 212 of the Companies Act, 2013, seeking relevant information,” the filing further stated.
The lender had earlier reported discrepancies amounting to Rs 2,600 crore, which were attributed to fraudulent practices involving certain senior executives and former key management personnel.
In a prior communication dated June 2, 2025, the bank had informed the SFIO about issues related to the accounting of internal derivative trades, balances under “other assets” and “other liabilities,” and microfinance-related income entries. These matters were found during the bank’s internal and statutory audits.
As per audit findings, one of the major corrections involved a write-off of Rs 1,960 crore of notional profits from internal trades accumulated since FY16. In addition, incorrect booking of Rs 673.82 crore as interest income and Rs 172.58 crore as fee income over three quarters was identified and reversed in Q4 of FY25.Another Rs 595 crore pertaining to misclassified asset and liability entries was also netted off in the books.
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