IndusInd Bank has faced scrutiny following disclosures of suspected fraud and insider trading, prompting an investigation by India's capital markets regulator, SEBI. SEBI Chairperson Tuhin Kanta Pandey confirmed the probe into potential major violations. The bank's promoter, IndusInd International Holdings Limited (IIHL), led by Ashok Hinduja, has expressed confidence in the bank's leadership and affirmed readiness to provide additional equity support if required to sustain business growth. Despite these assurances, IndusInd Bank reported a standalone net loss of Rs 2,235.99 crore in the fourth quarter of fiscal year 2025, compared to a net profit of Rs 2,346.84 crore in the same quarter the previous year. Total income declined by 22.83% year on year to Rs 11,342.65 crore for the quarter ended March 31, 2025. The bank is also seeking asset details of senior officials amid insider trading allegations. Market reactions have been mixed, with the bank's shares rebounding on hopes that it has addressed accounting issues but also experiencing some volatility. Analysts note that issues related to microfinance institutions (MFIs) are a larger concern for IndusInd than derivative exposures. The fraud allegations may trigger swift regulatory actions from the Reserve Bank of India, SEBI, and other probe agencies.