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.

IndusInd Bank has received a formal investigation letter dated December 23, 2025, from the Serious Fraud Investigation Office (SFIO) under Section 212 of the Companies Act, 2013. The bank disclosed this development through a regulatory filing under Regulation 30 of SEBI listing regulations on December 24, 2025.

Investigation Timeline and Background

The current investigation stems from matters that IndusInd Bank initially reported to the SFIO on June 02, 2025. These matters included accounting issues related to internal derivative trades, certain unsubstantiated balances in other assets and other liabilities accounts, and microfinance interest income and fee income irregularities.

Regulatory Communication Process

In its December 18, 2025 intimation, IndusInd Bank had mentioned that the SFIO had telephonic conversations with bank officials and that written communication was awaited. The formal letter received on December 23, 2025, represents the materialization of this expected written communication, seeking relevant information for the investigation into the bank's affairs.

Current Investigation Status

The SFIO investigation focuses on multiple accounting irregularities that were self-reported by the bank. The Serious Fraud Investigation Office, operating under the Ministry of Corporate Affairs, has statutory powers to investigate companies when there are allegations of fraud or serious violations of corporate laws.

Bank's Cooperation Commitment

IndusInd Bank has reiterated its commitment to provide full cooperation and support to law enforcement agencies throughout the investigation process. The bank continues to work with regulatory authorities to address the identified concerns and ensure compliance with all applicable laws and regulations. This information has also been made available on the bank's official website for stakeholder transparency.