'IndusInd Bank has sufficient capital, depositors need not worry', RBI statement

In the recent crisis of IndusInd Bank, the country's central bank, the Reserve Bank of India, issued a statement. In the statement, the Reserve Bank has made it clear that IndusInd Bank is in good financial health and that the bank has adequate capital, and thus depositors need not be concerned.

The Reserve Bank announcement stated that the bank's financial condition was audited by the auditor and it was revealed that the bank has adequate capital as of the quarter ended 31st December 2024 and the bank's capital adequacy ratio stands at 16.46%, with the provision coverage ratio at 70.20%. According to the Reserve Bank, IndusInd Bank's liquidity coverage ratio as of March 9, 2025, is 113%, while it should be 100% under regulatory rules.

The Reserve Bank also asked the board of IndusInd Bank on Saturday to complete corrective action amid disclosure of a massive accounting discrepancy of Rs 2,100 crore declared by the bank during the current quarter. Notably, earlier this week, IndusInd Bank disclosed accounting discrepancies that had an estimated impact of 2.35% on the bank's net worth. Soon after this disclosure, the bank's shares also witnessed a sharp decline. According to information available in the public domain, the bank has already appointed an external audit team to conduct a comprehensive review of its existing systems and assess the actual impact.

Shares of IndusInd Bank closed 27.06% lower at Rs 656.80 on Tuesday. The biggest reason for this decline is said to be the problem in the bank's derivative portfolio. Due to this, the market cap of the bank decreased by 2.35%. When the investors' trust in the bank weakened, people started selling shares, due to which a huge decline was seen in the bank's shares.