The Reserve Bank of India (RBI) has issued a strong clarification, dismissing market speculation surrounding IndusInd Bank Ltd and confirming that the bank remains financially stable and well-capitalised. This statement comes amid rising concerns triggered by recent developments related to the bank.
IndusInd Bank’s strong financial standing
According to the RBI, IndusInd Bank’s financial indicators remain robust. The bank reported a Capital Adequacy Ratio of 16.46 per cent, a Provision Coverage Ratio of 70.20 per cent, and a Liquidity Coverage Ratio (LCR) of 113 per cent as of March 9, 2025—comfortably surpassing the 100 per cent regulatory requirement.
“As per auditor-reviewed financial results of the bank for the quarter ended December 31, 2024, the bank has maintained a comfortable Capital Adequacy Ratio of 16.46 per cent and Provision Coverage Ratio of 70.20 per cent. The Liquidity Coverage Ratio (LCR) of the bank was at 113 per cent as of March 9, 2025, as against regulatory requirement of 100 per cent,” the RBI said in a press release.
RBI directs full audit and corrective measures
To ensure full transparency, the central bank confirmed that IndusInd Bank has engaged an external audit team to assess its internal systems and review any financial impact. The RBI has directed the bank’s board and management to complete all remedial actions within Q4FY25 and make the necessary disclosures to stakeholders.
“Basis the disclosures available in public domain, the bank has already engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact expeditiously,” the RBI stated."The board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4FY25, after making required disclosures to all stakeholders," it added.
The RBI also reassured depositors that there is no need to react to speculative reports, as IndusInd Bank remains under close regulatory supervision with a stable financial position.
Derivatives discrepancy and RBI’s response
Earlier this week, IndusInd Bank disclosed discrepancies in its derivatives portfolio, which could negatively impact about 2.35 per cent of its net worth as of December 2024. The bank stated that these issues were identified during an internal review of its portfolio.
