The Reserve Bank of India (RBI) on Saturday said there is no need for depositors to react to “speculative reports” about IndusInd Bank (IIB) at this juncture.
IIB’s financial health remains stable and is being monitored closely by Reserve Bank, per a central bank statement.
RBI emphasised that IIB is well-capitalised and its financial position remains satisfactory. This statement comes in the wake of “some speculation relating to IIB in certain quarters, perhaps arising from recent events related to the bank.”
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The recent events related to the bank, which is India’s fifth largest private sector bank, include RBI granting only a year’s extension for the MD (versus three years recommended by the Bank’s board) followed by disclosure of a net worth hit of about ₹1,500 crore due to an accounting gap.
RBI noted that as per auditor-reviewed financial results of the bank for the quarter ended December 31, 2024, it has maintained a comfortable Capital Adequacy Ratio of 16.46 per cent and Provision Coverage Ratio of 70.20 per cent.
Further, the Liquidity Coverage Ratio (LCR) of the bank was at 113 per cent as on March 9, 2025, as against regulatory requirement of 100 per cent.
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The central bank, in a statement, said based on the disclosures available in the 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.
The board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter — Q4FY25, after making required disclosures to all stakeholders.
