RBI Confirms This Bank's Stability, Calls Recent Anomalies 'Accounting Issue'
Mumbai (The Uttam Hindu): The Reserve Bank of India (RBI) has reassured the bank's customers about the financial position of the bank amid the uncertainty surrounding the bank for the last few days. The central bank confirmed that Indusind Bank has sufficient capital and there is nothing to worry for the depositors. The central bank said in a statement on its website, "There is no need for depositors to react to speculation at this time." He said that the financial position of the bank remains stable and the Reserve Bank is keeping a close watch on it. According to RBI, IndusInd Bank's capital adequacy ratio was recorded at 16.46 per cent and provision coverage ratio (PAR) at 70.20 per cent in the quarter ended December 31, 2024. The bank also maintained a liquidity coverage ratio (LCR) of 113 per cent as of March 9, 2025, well above the regulatory requirement of 100 per cent. These figures indicate that the bank is financially strong to meet its obligations, the central bank said in a statement. RBI further said that IndusInd Bank has appointed an external audit team to review its systems and assess the implications of recent developments.
The bank's board and management have been directed to complete all the reform-related actions within the current quarter (Q4 FY 2024-25) and ensure proper disclosures to stakeholders. In its statement, the RBI emphasised that depositors should not react to speculative reports as the bank's financial position remains strong and is being closely monitored. The central bank also highlighted its strong track record in protecting depositors during financial uncertainties. The current situation at IndusInd Bank is not a major crisis but an accounting anomaly. Earlier this week, the bank had revealed that it had identified anomalies in its derivatives portfolio, which could impact its net worth by around 2.35 per cent by December 2024. However, according to the official statement, the bank is taking measures to resolve the issue.
