IndusInd Bank Limited has announced the approval of stock option grants to eligible employees under its Employee Stock Option Scheme (ESOP). The bank's Compensation and Nomination & Remuneration Committee sanctioned this decision on December 30, 2025, as part of the bank's employee incentive program.

Stock Option Grant Details

The committee approved the grant of 95,000 stock options to 5 eligible employees of the bank and BFIL (Bank's subsidiary). These options are convertible into an equal number of equity shares upon exercise, providing employees with potential ownership stakes in the organization.

Vesting and Exercise Terms

The stock options come with structured vesting and exercise provisions designed to retain talent and align employee interests with long-term company performance. The vesting schedule spans three years from the grant date, ensuring employees remain committed to the organization's growth trajectory.

Regulatory Compliance

The grant has been executed in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has fulfilled its disclosure obligations by informing both the National Stock Exchange of India Limited and BSE Limited about this development.

The grant price of ₹839.60 per share was determined based on the closing price on NSE on December 29, 2025, which was the previous trading day. This pricing methodology follows the standard practice of using the stock exchange with the highest trading volume for price determination.

Documentation and Transparency

IndusInd Bank has maintained transparency by hosting the complete details of this stock option grant on its official website at www.indusind.bank.in . This ensures stakeholders have access to comprehensive information about the ESOP scheme implementation and its terms.

Shares of IndusInd Bank are expected to be in focus following the formal receipt of an investigation letter from the Serious Fraud Investigation Office (SFIO). The private sector lender disclosed receiving official communication dated December 23 from SFIO, seeking comprehensive information under Section 212 of the Companies Act, 2013, regarding accounting discrepancies worth ₹2,600.00 crores involving fraud by senior executives and former key management personnel.

Investigation Timeline and Formal Communication

The SFIO probe represents an escalation from earlier telephonic conversations to formal written communication, marking a significant development in the ongoing investigation. The bank had initially reported these matters to SFIO on June 2, following discoveries during the audit of financial results for the quarter and year ended March.

The Ministry of Corporate Affairs directed the SFIO investigation citing public interest and serious accounting irregularities flagged by statutory auditors and forensic reports. This formal communication follows earlier telephonic conversations between SFIO officials and bank representatives.

Breakdown of Accounting Discrepancies

The investigation encompasses multiple areas of accounting irregularities spanning several business segments, with the largest impact stemming from internal derivative trades and microfinance operations.

One of the major corrections involved the write-off of ₹1,960.00 crores of notional profits from internal trades accumulated since FY16. The audit also identified incorrect booking of ₹673.82 crores as interest income and ₹172.58 crores as fee income over three quarters, which was reversed in the fourth quarter.

Market Impact and Investor Sentiment

The formal SFIO investigation has kept IndusInd Bank shares under investor scrutiny, with the stock experiencing sustained pressure since the accounting irregularities were first disclosed in March. The bank's shares have been volatile as investors assess the potential implications of the ongoing probe.

The SFIO investigation under Section 212 of the Companies Act, 2013, empowers the agency to conduct comprehensive investigations where fraud is suspected, indicating the serious nature of the accounting concerns and their potential impact on stakeholder confidence.

Bank's Response and Compliance

IndusInd Bank has maintained transparency throughout the investigation process, providing regular updates through exchange filings and extending full cooperation to regulatory authorities. The bank continues to work with SFIO officials and has made all relevant disclosures regarding the accounting irregularities and corrective measures taken during the audit process.