March 15, 2025 - The Reserve Bank of India (RBI) has reassured depositors of the financial stability of IndusInd Bank Ltd after the latter’s share prices fell following nervousness on the disclosure of a Rs 2,100 crore discrepancy in the bank’s derivatives portfolio. RBI has said that the bank is well-capitalised and told depositors to ignore speculative reports.

Earlier this week, IndusInd Bank had announced an accounting discrepancy with an estimated impact of 2.35 per cent of the bank's net worth. Following the disclosure, the bank’s share price plummeted by more than 27% in a single day. And in six trading sessions, IndusInd Bank's stock shed around 38% market cap.

Meanwhile, today the RBI asked the private sharelender’s board to complete remedial action during the current quarter. It said the bank has got an external audit team to address the discrepancies, review its current systems and expeditiously asses the actual impact. Corrective actions were underway, said the central bank, assuring depositors it was closely monitoring the situation.

“As such, there is no need for depositors to react to the speculative reports at this juncture. The bank’s financial health remains stable and is being monitored closely by Reserve Bank,” RBI said in a press release.

The statement further read, “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.”

With Media Inputs