The Serious Fraud Investigation Office (SFIO) has broadened its investigation into IndusInd Bank, focusing on alleged irregularities in its derivatives portfolio that have led to losses of approximately ₹2,000 crore (roughly $240 million USD). Major audit firms, including S R Batliboi & Co and M P Chitale & Co, have been summoned to participate in the inquiry, which aims to uncover any lapses in oversight or reporting. The investigation was initiated by the Ministry of Corporate Affairs, citing significant accounting discrepancies highlighted by statutory auditors and forensic reports. The inquiry follows the questioning of former CEO Sumant Kathpalia and former treasury head Siddharth Banerjee. The SFIO is examining various forms and reports related to the bank's financial practices, including potential fraud under Section 447 of the Companies Act. The investigation traces back to March 2025 when the bank disclosed discrepancies in its derivatives transactions, leading to significant losses recognized in its quarterly results. This has resulted in the resignation of key executives, including Kathpalia and deputy CEO Arun Khurana.