MCA Orders SFIO Probe Into IndusInd Bank’s Rs 2,000-Crore Accounting Lapses

Overview

• The SFIO has been tasked to review ADT-4 filings, forensic monitoring reports, forensic audits, internal audits, and findings from other agencies for possible manipulation, fictitious accounts, misclassification, and related transactions.
• Mumbai Police’s Economic Offences Wing is preparing to close its preliminary enquiry after reporting no evidence of siphoning or diversion, while it awaits clarifications from the RBI on accounting and hedging practices.
• IndusInd Bank earlier disclosed a Rs 1,979-crore lapse tied to derivatives, including Rs 674 crore booked as microfinance income, Rs 595 crore under other assets, and Rs 172.6 crore as fee income, with an estimated 2.35% hit to net worth.
• Former leaders including ex-CEO Sumant Kathpalia, ex-deputy CEO Arun Khurana, and former CFO Govind (Gobind) Jain have been questioned, and top executive resignations followed the disclosures in April 2025.
• Grant Thornton’s forensic audit covering FY2016–FY2024 reportedly identified about 25 linked individuals, and investigators are also examining insider trading allegations and a separate entry of about Rs 250 crore.