News

IndusInd Bank has come under regulatory scrutiny after the government handed over the matter to the Serious Fraud Investigation Office (SFIO) for a detailed probe, marking a negative development for the private lender.

According to Zee Business sources, the investigation has been ordered under Section 212 of the Companies Act. The SFIO will examine alleged irregularities in derivatives accounting and claims of profit overstatement at IndusInd Bank.

This is the first time that the IndusInd Bank matter has been formally referred to a central investigation agency. The SFIO received the order to initiate the probe earlier this week.

The development comes after the Mumbai Police’s Economic Offences Wing (EOW) was unable to take the preliminary inquiry forward. As a result, the case has now been escalated to the SFIO, which has wider powers to investigate complex corporate frauds.

Sources said the focus of the probe will be on whether accounting practices related to derivative transactions led to misreporting of financial performance.

IndusInd Bank and the Ministry of Corporate Affairs (MCA) have not responded to Zee Business queries on the matter so far.

Shares of IndusInd Bank were trading lower on Wednesday, December 17. At 12:42 pm IST, IndusInd Bank share price was trading at Rs 836.10 on the NSE, down Rs 8.95, or 1.06 per cent, for the day.

The stock opened at Rs 838.20 and touched an intraday high of Rs 846.10 and a low of Rs 831.65. The bank’s market capitalisation stood at around Rs 65.15 thousand crore.

IndusInd Bank shares remain well below their 52-week high of Rs 1,086.55, while the 52-week low for the stock is Rs 606.