IndusInd Bank's financial health remains stable, says RBI; check other details

Earlier this week, IndusInd Bank disclosed an accounting discrepancy that is estimated to have affected 2.35% of its net worth. Soon after the disclosure, the bank's securities experienced a massive price correction.

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.

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% and a Provision Coverage Ratio of 70.20%.

The Liquidity Coverage Ratio (LCR) of the bank was at 113% as of March 9, 2025, as against the regulatory requirement of 100%.

Chartered accountants' apex body ICAI may review the financial statements of IndusInd Bank, which is grappling with discrepancies in accounting estimated to be Rs 2,100 crore.

The Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI) is likely to review the financial statements of the bank.

FRRB conducts the review of financial statements of companies to assess compliance with accounting standards, standards on auditing, Schedule II, and III of the Companies Act, 2013, among others.