IndusInd Bank share price surges up to 5% after RBI says bank's financial health remains stable

The lender's shares took a heavy beating last week after the private sector lender disclosed an accounting discrepancy that is estimated to have affected 2.35% of its net worth.

Analysts have pegged the discrepancy at ₹2,100 crore in absolute terms.

Shares of the bank have nosedived 26% in the last five sessions.

RBI said in a statement that based on the disclosures available in the public domain, the bank has already engaged an external audit team to review its current systems comprehensively and assess and account for the actual impact expeditiously.

"The Board and the management have been directed by the Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4FY25, after making required disclosures to all stakeholders," it said.

Assuaging the concerns of customers, the RBI in the clarificatory statement said there was no need for depositors to react to the speculative reports at this juncture.

It said there has been some speculation relating to IndusInd Bank Ltd in certain quarters, perhaps arising from recent events related to the bank.

The central bank assured customers and investors that the bank's financial health remains stable and is being monitored closely by it.

Sharing the financial parameters of the bank, RBI said the bank is well-capitalised and the financial position remains satisfactory.

Before the accounting lapse surfaced, IndusInd Bank's stock price slipped after the RBI decided to extend the incumbent CEO's term to one year against three years that was sought by the private sector lender.

Earlier this month, IndusInd Bank said the Reserve Bank of India has conveyed its approval for the reappointment of Sumant Kathpalia as Managing Director & CEO of the bank for a further period of one year with effect from March 24, 2025, till March 23, 2026.

According to experts, the move has raised concerns among investors, as the shorter extension could create uncertainty about leadership continuity.