RBI Directs IndusInd Bank To Complete Remedial Action By March 31; Closely Monitors Financial Health

Mumbai: The Reserve Bank of India (RBI) on Saturday asked IndusInd Bank’s board and the management to complete remedial action by March 31, 2025, after making required disclosures to all stakeholders.

“As such, there is no need for depositors to react to speculative reports at this juncture. The bank’s financial health remains stable, and is being monitored closely by the Reserve Bank,” RBI said in a statement.

It was on March 10, the bank disclosed a discrepancy in its accounting with an estimated impact of 2.35 per cent of its networth of Rs 64,000 crore as of December 31, 2024.

Experts had estimated accounting lapses at approximately Rs 2,100 crore (especially derivatives positions in forex trading and forex deposits) in the bank’s net worth. Post disclosure, the bank’s share price witnessed a massive meltdown of over 40 per cent on the main bourses.

“There has been some speculation relating to IndusInd Bank in certain quarters, perhaps arising from recent events related to the bank. The board and the management have been directed by RBI to have the remedial action completed fully during the current quarter (Q4FY25), after making required disclosures,” RBI said.

“The Reserve Bank would like to state that the bank is well-capitalised and the financial position of the bank remains satisfactory. As per auditor-reviewed financial results of the bank for the quarter ended December 31, 2024, the bank has maintained a comfortable Capital Adequacy Ratio of 16.46 per cent and Provision Coverage Ratio of 70.20 per cent. The Liquidity Coverage Ratio of the bank was at 113 per cent as on March 9, 2025, as against regulatory requirement of 100 per cent,” the apex bank added.

Based on the disclosures available in public domain, the bank has already engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact expeditiously.