CHENNAI: Hinduja group promoted private lender IndusInd Bank on Friday said the Serious Fraud Investigation Office has held discussions with bank officials earlier this week as part of its examination of the accounting discrepancies recently identified at the lender. The bank added that the SFIO is expected to follow up with a formal written communication seeking specific details and documents related to the matter.
The bank said in a regulatory filing that the interaction was aimed at helping the investigating agency understand the nature and scope of the discrepancies flagged during internal checks. IndusInd Bank reiterated that it is fully cooperating with the authorities and will provide all information sought in line with regulatory requirements once the written queries are received.
The development has kept the lender under heightened scrutiny, coming at a time when investors and regulators are closely tracking governance standards and financial reporting practices across the banking sector.
The lender reported a net loss of Rs 2,329 crore in the January–March quarter of FY25 after significantly increasing provisions and reversing revenue and income that had been incorrectly recorded. These reversals were related to accounting discrepancies identified during the quarter in the bank’s derivatives and microfinance businesses.
In March, the Bank disclosed that an internal review had flagged irregularities in its derivatives portfolio, following which it appointed external agencies to independently assess the financial impact of the discrepancies and identify their root causes.
While IndusInd has maintained that the identified discrepancies do not threaten its financial stability or day-to-day operations, the SFIO’s involvement has added to market unease over potential governance lapses and the extent of remedial measures that may follow.
Market participants are expected to remain cautious until there is greater clarity on the findings of the probe and its implications for the bank’s financial statements and management oversight. Analysts note that timely cooperation and transparent disclosures could help limit reputational damage if the issues are found to be contained and addressed promptly.
For now, the SFIO engagement is likely to remain an overhang on IndusInd Bank’s stock, with investors watching closely for further updates from both the investigating agency and the bank in the coming weeks.