The Reserve Bank of India (RBI) on March 15 addressed speculation surrounding IndusInd Bank, affirming that the lender remains financially stable and well-capitalised.
IndusInd Bank reported a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% for the quarter ending December 31, 2024. As of March 9, 2025, its Liquidity Coverage Ratio stood at 113%, exceeding the regulatory requirement of 100%, according to the RBI’s statement.
“The board and the management of the bank have been directed by RBI to have the remedial action completed fully during the current quarter (Q4FY25), after making required disclosures to all stakeholders,” the central bank stated. It also noted that an external audit is underway to assess the impact of recent discrepancies.
The RBI urged customers not to react to speculative reports, emphasizing that IndusInd Bank’s financial position remains satisfactory and is under regulatory monitoring.
The statement comes after IndusInd Bank disclosed on March 10 that discrepancies in its derivative portfolio could reduce its net worth by approximately 2.35%, with an estimated financial impact of ₹1,600 crore after taxes and ₹2,100 crore before taxes. These discrepancies, discovered in an internal review, span transactions over the past seven to eight years.
Despite the bank’s reassurances that it has sufficient reserves to manage the issue, IndusInd Bank’s stock has dropped nearly 30% since the announcement. On March 13, the NSE placed the stock under short-term Additional Surveillance Measure (ASM) - Stage 1 due to the steep decline.
As of March 13, IndusInd Bank shares closed at ₹672.65 on the NSE, down ₹12.05 or 1.76%. Several brokerages have since downgraded their ratings and lowered target prices.