Govt orders probe against IndusInd Bank following auditor concerns

The Ministry of Corporate Affairs (MCA) has ordered a probe by the Serious Fraud Investigation Office (SFIO) against IndusInd Bank, sources told CNBC-TV18.

According to the sources, the investigation was initiated after the bank’s auditors flagged certain concerns to the Reserve Bank of India (RBI).

The probe is linked to a derivatives reporting-related matter.

The order directing the SFIO to initiate the investigation was issued on December 12. No further details on the scope or timeline of the probe were immediately available.

In a separate development, IndusInd Bank has made several senior-level appointments as part of an internal restructuring aimed at strengthening capabilities across core business and support functions.

As part of these changes, the bank appointed Amitabh Kumar Singh as Chief Human Resources Officer. Singh brings nearly three decades of experience in human resources roles across the ICICI Group and will oversee human capital strategy, succession planning, organisational processes and HR digitisation initiatives.

Earlier in November, the lender had issued a clarification denying media reports suggesting a potential capital raise. IndusInd Bank termed the reports “speculative and factually inaccurate” and said it had held no such discussions.

The clarification followed reports that the bank had begun groundwork for a $1 billion equity raise and was evaluating options such as a qualified institutional placement (QIP) or a preferential issue. Those reports had also suggested that Citi was advising the bank on the proposed capital raise, claims that the bank dismissed.