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The Serious Fraud Investigation Office (SFIO) has launched a formal investigation into the affairs of IndusInd Bank under Section 212 of the Companies Act, 2013, the private sector lender revealed in a regulatory filing on Wednesday. The bank indicates that it received a communication from the SFIO dated December 23, 2025 requesting information and documents related to the investigation.
According to the filing, the investigation concerns issues that the bank had previously disclosed, including the accounting treatment of internal derivatives transactions, unexplained balances reflected in “other assets” and “other liabilities,” and certain concerns related to interest and fee income from its microfinance activities.
“We inform that the bank received a letter dated December 23, 2025 from the SFIO, relating to 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 empowers the central government to refer complex and serious cases of corporate fraud to the SFIO, granting the agency broad powers to review financial records, summon individuals and investigate suspected misconduct in the public interest.
IndusInd Bank had informed the stock exchanges on December 18, 2025 that these matters had already been reported to the SFIO on June 2, 2025, as per regulatory requirements. The bank then indicated that it had held preliminary discussions with SFIO officials and was awaiting formal written communication, which has now been received.
The lender had clarified that reporting was mandatory under the Master Directions on Fraud Risk Management of the Reserve Bank of India, issued on July 15, 2024. These rules require banks to report all frauds involving ₹1 crore or more not only to the RBI but also to the SFIO under the Ministry of Corporate Affairs. Accordingly, IndusInd Bank said it had proactively shared details related to derivatives accounting issues, unsubstantiated balance sheet items and microfinance-related revenues with the investigating agency.
The bank said it is fully cooperating with law enforcement authorities and will provide any information sought in the investigation. It also confirmed that the disclosure had been made public through filings with stock exchanges and on its website.
The SFIO investigation comes against the backdrop of significant accounting issues reported earlier this year. In April, the bank’s external auditor highlighted a cumulative negative impact of ₹1,959.98 crore on the profit and loss account as on March 31, 2025, resulting from discrepancies in the derivatives portfolio. On April 15, IndusInd Bank separately disclosed the findings of another external agency, which estimated a negative impact of ₹1,979 crore on the bank’s net worth due to accounting errors related to derivatives transactions.
The bank estimated that these discrepancies would result in a negative after-tax impact of approximately 2.27% on its net worth starting in December 2024. In a subsequent communication, it pegged the impact at approximately 2.35% of net worth, highlighting the significant nature of the accounting issues currently under regulatory review.
Shares of IndusInd Bank closed at Rs 848.25, down 0.05 per cent.
