IndusInd Bank Shares Rebound Over 5 Per Cent After RBI’s Reassurance

Shares of IndusInd Bank bounced as much as 5.6 per cent on Monday, March 17, after the Reserve Bank of India (RBI) issued a statement reassuring depositors that the bank is "well-capitalised" and its financial position remains “satisfactory”.

The private lender’s shares surged to an intraday high of Rs 709.90 apiece on the NSE. From its pre-crash level, the bank stock is still trading lower by 21 per cent. From its 52-week low of Rs 606 apiece, hit on March 12, it is up by nearly 17 per cent.

RBI's Reassurance To Depositors

In a statement issued on Saturday, the RBI said, “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.”

RBI’s reassurance came amid the discrepancies found in the private bank’s forex derivatives portfolio. The bank had 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, on March 11, the bank’s shares crashed more than 27 per cent, triggering worry among investors.

RBI Directs IndusInd Bank To Take Remedial Actions

The central bank has also directed the bank’s board and management to implement necessary remedial actions, which are required to be completed within the current quarter (Q4 FY25), which ends on March 31, 2025. The bank is also required to ensure complete transparency with its stakeholders.

RBI also noted that 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.

According to the RBI’s statement, 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.