RBI Affirms IndusInd Bank’s Stability Amid ₹2,100 Crore Accounting Discrepancy

The Reserve Bank of India (RBI) has addressed concerns regarding a significant accounting discrepancy reported by IndusInd Bank, amounting to ₹2,100 crore. The central bank assures stakeholders of the bank’s robust financial health and capital adequacy.

Discovery of Accounting Discrepancy

On March 10, 2025, IndusInd Bank revealed an internal review had uncovered discrepancies in processes related to assets and liabilities within its derivative portfolio. The estimated adverse impact of this error is approximately 2.35% of the bank’s net worth as of December 2024, translating to about ₹2,100 crore pre-tax and ₹1,600 crore post-tax.

RBI’s Assurance on Financial Stability

In response, the RBI stated that IndusInd Bank remains well-capitalized, with a satisfactory financial position. As per auditor-reviewed financial results for the quarter ending December 31, 2024, the bank maintained:

• Capital Adequacy Ratio (CAR): 16.46%
• Provision Coverage Ratio (PCR): 70.20%
• Liquidity Coverage Ratio (LCR): 113% (as of March 9, 2025), exceeding the regulatory requirement of 100%

Mandated Remedial Actions

The central bank has directed IndusInd Bank’s Board and management to:

• Engage an external audit team to comprehensively review current systems.
• Assess and account for the actual impact of the accounting error promptly.
• Complete all remedial actions within the current quarter (Q4 FY25), ensuring necessary disclosures to all stakeholders.

Reassurance to Depositors and Stakeholders

The RBI emphasizes there is no need for depositors to react to speculative reports. The financial health of IndusInd Bank remains stable and is under close monitoring by the Reserve Bank.