RBI directs IndusInd Bank to complete remedial action in Q4: ‘Well capitalised, depositors need not worry’ | Mint

The Reserve Bank of India (RBI) on Saturday, March 15, asked IndusInd Bank’s board to complete remedial action during the current quarter amid disclosure of a whopping ₹2,100 crore discrepancy in accounting announced by the bank. Sharing the financial parameters of the bank, RBI said it would like to state that the bank is well-capitalised and the financial position remains satisfactory.

Earlier this week, IndusInd Bank disclosed an accounting discrepancy with an estimated impact of 2.35 per cent of the bank’s net worth. Soon after the disclosure, IndusInd Bank’s share price crashed by over 27 per cent in one day.

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

“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,” said the RBI.

The statement said that depositors need not react to the speculative reports at this juncture. The central bank assured customers and investors that the bank’s financial health remains stable and is being monitored closely by it.

IndusInd Bank had informed that the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the RBI about this last week. The final number will be known after the external agency, which the bank has appointed, finalises its report by early April.

As per auditor-reviewed financial results of the bank for the December quarter, 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 on March 9, 2025, as against regulatory requirement of 100 per cent.