Indusind Bank had admitted to accounting lapses, due to which its shares had fallen sharply recently. This has created panic among the bank’s depositors and stakeholders. Meanwhile, RBI has issued a clarification in this regard.
The disclosure of a huge fraud of Rs 2,100 crore in Indusind Bank has raised concerns among investors and depositors about the financial condition of the bank. After this disclosure, the shares of the bank fell drastically. But in the meantime, RBI has assured the depositors and stakeholders that the financial condition of the bank is strong and stable. On Saturday, RBI asked the board of Indusind Bank to complete the corrective action. The central bank said in a statement today that Indusind Bank has sufficient capital and the financial condition of the bank remains satisfactory. The meaning is clear, the bank is not going to sink.
Bank has money to bear Loss
RBI said that the bank’s capital adequacy ratio (CAR) was 16.46 percent and provision coverage ratio was 70.20 percent in the quarter ended December 31, 2024. That is, the bank has enough money to bear the loss and is also prepared to deal with those who do not repay the loan. RBI said that as of March 9, 2025, Indusind Bank’s liquidity coverage ratio (LCR) was 113 percent. This is more than the regulatory requirement of 100 percent. Meaning the bank has enough cash to meet the immediate money needs. For example, if many people want to withdraw their money together, then also the bank can give it to them.
External audit team
The central bank also said that IndusInd Bank has appointed an external audit team to review its existing systems and immediately assess any financial impact. The bank’s board and management have been directed to complete all corrective actions within the current quarter (Q4FY25) and communicate the necessary information to stakeholders.
RBI also clarified, ‘There is no need for depositors to react to speculative news at this time. The financial position of the bank remains stable and is being closely monitored by the Reserve Bank.’ Indusind Bank said that accounting lapses were detected around September-October last year and the bank had given preliminary information about this to RBI last week. According to the bank, the final number will be known when the external agency appointed by the bank finalizes its report in early April.
