IndusInd Bank: ‘IndusInd Bank has enough capital, depositors need not worry’, RBI statement
New Delhi| Amidst the ongoing crisis in IndusInd Bank, the country’s central bank Reserve Bank of India has issued a statement. In this statement, the Reserve Bank has said that IndusInd Bank is financially stable and the bank has sufficient amount of capital, so depositors do not need to worry.
The financial results of the bank were reviewed by the auditor, which showed that the bank has sufficient capital and has a capital adequacy ratio of 16.46 per cent in the quarter ending 31 December 2024, while the provision coverage ratio is 70.20 per cent, the Reserve Bank statement reported. According to the Reserve Bank, IndusInd Bank has a liquidity coverage ratio of 113 per cent as of 9 March 2025, whereas under regulatory rules these should be 100 per cent.
The Reserve Bank on Saturday also asked IndusInd Bank’s board to complete corrective action amid revelations of a massive accounting discrepancy of Rs 2,100 crore announced by the bank during the current quarter. It is noteworthy that earlier this week, IndusInd Bank had revealed accounting irregularities, which had an estimated impact of 2.35 per cent on the bank’s net worth. Soon after this revelation, the bank’s shares also saw a huge fall. According to information available in the public domain, the Bank has already engaged an external audit team to conduct a comprehensive review of its existing systems and to assess the actual impact.
Shares of IndusInd Bank closed down 27.06% to Rs 656.80 on Tuesday. The biggest reason for this decline is said to be irregularities in the bank’s derivatives portfolio. This reduced the bank’s market cap by 2.35 percent. When investor confidence in the bank weakened, people started selling shares, due to which a huge fall was seen in the bank’s shares.
