RBI Says IndusInd Bank's Financial Health Stable, Reassures Depositors

The Reserve Bank of India (RBI) issued a statement on Saturday addressing the ongoing crisis at IndusInd Bank. In a statement, the central bank reassured depositors that the bank is "well-capitalised" and its financial position remains “satisfactory”.

According to the RBI, IndusInd Bank's auditor-reviewed financial results for the quarter ended December 31, 2024, show a strong Capital Adequacy Ratio (CAR) of 16.46 per cent and a Provision Coverage Ratio (PCR) of 70.20 per cent. The bank's Liquidity Coverage Ratio (LCR) stood at 113 per cent as of March 9, 2025, which the RBI said is well above the regulatory minimum of 100 per cent.

The RBI also noted that, as per public disclosures, IndusInd Bank has already engaged an external audit team to comprehensively review their current systems and to assess and account for the actual impact expeditiously.

The central bank has directed the bank’s board and management to implement necessary remedial actions, which are required to be completed during the current quarter (Q4 FY25). The bank is also required to ensure complete transparency with its stakeholders.

The RBI further urged depositors to ignore speculative reports, assuring them that the bank’s financial health remains stable and is under close monitoring.

"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 the Reserve Bank," the RBI said.

IndusInd Bank Crisis

IndusInd Bank earlier this week, announced that its internal review revealed an accounting discrepancy in its forex derivatives portfolio. The bank estimated a negative impact of around 2.35 per cent on its net worth, which was Rs 65,102 crore as of December 2024 end. This means an impact of about Rs 1,530 crore. Following this, the bank’s shares had crashed more than 27 per cent on March 11.

A day earlier, the RBI had granted the current chief executive officer (CEO) Sumant Kathpalia only a one-year extension instead of the three years the bank had requested, raising concerns about the bank’s attrition at the leadership level. Earlier this year in January, the bank’s chief financial officer (CFO) Gobind Jain also resigned.