MUMBAI: Private sector lender IndusInd Bank, which has been under fire from regulators and federal investigation agencies since March when it had admitted to a Rs 2,000-crore accounting fraud in its forex trading book, has said it has received a second notice from the Serious Fraud Investigation Office. On December 18 also the bank had said it had received a notice from the federal agency in this matter.
In an exchange filing Wednesday, the Hinduja group promoted bank said, “in furtherance to the intimation dated December 18, 2025, wherein we had informed that matters relating to accounting of internal derivative trades, certain unsubstantiated balances in “other assets” and “other liabilities” accounts and microfinance interest income/fee income were reported to the SFIO on June 2, 2025.
“We had also mentioned that the SFIO had telephonic conversations with our officials and a written communication was awaited.“We further inform that the bank has received a letter dated December 23, 2025, from the SFIO, regarding an investigation into the above-mentioned affairs of the bank seeking relevant information,” the filing said.
The bank is also facing several other probes since the scam came out into the open. For instance the markets regulator Sebi is investigating six bank officials, including its former CEO Sumant Kathapalia and the deputy CEO Arun Khurana for suspected insider trading related to stock sales made before the accounting issues were publicly disclosed.
The Mumbai police's economic offences wing is also probing the accounting scam. The National Financial Reporting Authority (NFRA) has also issued notices to the bank's auditors regarding potential audit lapses. The SIFO probe began after the government on December 18 ordered the agency to probe the accounting lapse which included around Rs 2,000 crore unreported losses in its forex derivative book for almost a decade and alleged claims of profit overstatement to the tune of about Rs 250 crore, at the bank.
The SFIO probe is based on the finding of the preliminary probe by the economic offences wing of the Mumbai Police. These scams, first admitted by the bank (after RBI asked it to do so in the first week of March) led to the resignations of CEO Sumant Kathpalia and deputy CEO Arun Khurana late April 2025.