The Reserve Bank of India (RBI) assured IndusInd Bank depositors of the bank’s financial stability, following speculation about its financial health and confirmed that IndusInd Bank remains well-capitalised and financially stable, with no cause for concern among depositors. The RBI emphasized that there is no need for depositors to react to speculative reports, as the bank’s financial health remains satisfactory and under close monitoring.
As per auditor-reviewed financial results of the bank mentioned below:
Key Financial Ratios:
– Capital Adequacy Ratio (CAR) of 16.46% for the quarter ending December 31, 2024.
– Provision Coverage Ratio (PAR) of 70.20% for the same period.
– Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, exceeding the regulatory requirement of
100%.
The central bank said in a statement that these figures show the bank has enough financial strength to cover its responsibilities. RBI also clarified that IndusInd Bank has engaged an external audit team to review its systems and assess the impact of recent developments, particularly the accounting discrepancies.
Remedial Actions:
The bank’s Board and management have been directed by the RBI to complete remedial actions within Q4 FY25 and ensure proper disclosures to stakeholders. RBI clarified that the situation at IndusInd Bank is not a crisis, but a one-time accounting lapse, with corrective measures already underway. RbI said that IndusInd Bank had identified discrepancies in its derivatives portfolio, which could impact approximately 2.35% of the bank’s net worth as of December 2024.
The RBI highlighted its strong track record of safeguarding depositors, referencing past crises such as YES Bank (2020), RBL Bank (2021), Global Trust Bank (2004), and ICICI Bank’s liquidity concerns (2008).