Companies Act
Corp affairs ministry initiates probe against IndusInd Bank under Companies Act
This story was originally published at 18:22 IST on 24 December 2025
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NEW DELHI – The Serious Fraud Investigation Office under the Ministry of Corporate Affairs has initiated an investigation against IndusInd Bank under the Companies Act, the bank informed exchanges on Wednesday. The probe is in relation to the accounting discrepancies discovered in the bank's books earlier this year, which also led to suspicion of fraudulence by employees.
In June, the bank had reported to the enforcement agency error in accounting of internal derivative trades, certain unsubstantiated balances in "other assets" and "other liabilities" accounts of the bank and in microfinance interest income. The two parties had a telephonic conversation, after which the bank awaited written communication from the ministry.
"In this regard, we hereby inform that the bank has received a letter dated Dec. 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 bank said. "The bank continues to give full cooperation and support to the law enforcement agencies."
After an independent audit, IndusInd Bank had reported a hit of INR 20 billion to its net worth due to discrepancies in derivatives accounting. In an internal audit in May, the lender also found several irregularities in the microfinance business and revealed that INR 6.74 billion was incorrectly recorded as interest for three quarters of 2024-25 (Apr-Mar).
In the September quarter, the lender was in the red with a net loss of INR 4.45 billion due to higher than expected provisions on microfinance loans. Shares of the bank Wednesday closed 0.2% lower at INR 848.05 on the National Stock Exchange. End
Reported by Krity Ambey
Edited by Avishek Dutta
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