IndusInd Bank faces SFIO investigation after auditors flag concerns

The Ministry of Corporate Affairs has directed the Serious Fraud Investigation Office to initiate a probe into IndusInd Bank, following concerns raised over certain derivatives-related reporting practices, according to sources familiar with the development.

Sources said the investigation was triggered after the bank’s auditors flagged issues to the Reserve Bank of India, prompting regulatory scrutiny. The order authorising the SFIO inquiry was issued on December 12, though details regarding the scope, duration, or potential outcomes of the investigation have not yet been disclosed.

The probe is understood to be focused on matters linked to derivatives reporting, an area that has come under heightened regulatory attention across the financial sector. Neither the ministry nor the bank has publicly commented on the specifics of the inquiry so far.

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Separately, IndusInd Bank has announced a series of senior management appointments as part of an internal reorganisation aimed at strengthening key business and support functions.

Among the leadership changes, Amitabh Kumar Singh has been appointed as Chief Human Resources Officer. With nearly 30 years of experience across human resources roles within the ICICI Group, Singh will be responsible for overseeing workforce strategy, leadership succession, organisational development, and the bank’s HR digital transformation initiatives.

Earlier, the bank had publicly refuted reports suggesting it was preparing to raise fresh capital. In a clarification issued in November, IndusInd Bank described such claims as speculative and inaccurate, stating that no discussions were underway regarding an equity fundraise.

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The clarification came after media reports indicated that the lender was exploring options for a potential $1 billion equity raise through routes such as a qualified institutional placement or a preferential issue, with an international investment bank allegedly acting as advisor, claims the bank categorically denied.