The Reserve Bank of India on Saturday asked the board of IndusInd Bank to complete corrective action amid revelations of a massive Rs 2,100 crore accounting error declared by the bank during the current quarter. IndusInd Bank had disclosed the accounting error this week. It is estimated to have a 2.35 percent impact on the bank’s net worth. Soon after this disclosure, the bank’s share price saw a sharp decline. The RBI said in a statement that an external audit team has been appointed to conduct a comprehensive review of the system and assess the actual impact.The central bank said, “The board and management have been directed by the Reserve Bank to complete full corrective action during the January-March quarter, after making the necessary disclosures to all stakeholders.” IndusInd Bank said that the accounting lapses were detected around September-October last year, and the bank had given preliminary information about this to RBI last week. According to the bank, the final number will be known when the external agency appointed by the bank finalizes its report in early April.IndusInd Bank’s stock has fallen significantly in the last few days. On Thursday, the last trading day of the week, IndusInd Bank’s stock closed with a decline on BSE. The stock closed at Rs 672.10, down 1.84 percent or Rs 12.60. The 52-week high of this stock is Rs 1576. At the same time, the 52-week low is Rs 605. The company’s market cap is Rs 52,360.25 crore on BSE.The Reserve Bank of India (RBI) has reassured the bank’s customers about its financial position amid the uncertainty surrounding Indusind Bank for the past few days. The central bank confirmed that IndusInd Bank has adequate capital, and there is nothing to worry about for depositors. “At this time there is no need for depositors to react to speculation,” the central bank said in a statement on its website. He said that the bank’s financial position remains stable and the Reserve Bank is monitoring it closely. According to the RBI, Indusind Bank’s capital adequacy ratio was recorded at 16.46 percent and provision coverage ratio (PAR) at 70.20 percent in the quarter ended December 31, 2024. The bank also maintained a liquidity coverage ratio (LCR) of 113 percent as of March 9, 2025, well above the regulatory requirement of 100 percent. The central bank said in a statement that these figures indicate that the bank is financially strong to meet its obligations. RBI, in its statement, stressed that depositors should not react to imaginary reports, as the financial position of the bank remains strong and it is being closely monitored.RBI further said that IndusInd Bank has appointed an external audit team to review its systems and assess the implications of recent developments. The board and management of the bank have been directed to complete all the work related to improvement within the current quarter (fourth quarter of FY 2024-25) and ensure proper disclosures to stakeholders. RBI, in its statement, emphasized that depositors should not react to hypothetical reports, as the financial position of the bank remains strong and is being closely monitored.Talking on this topic, Vibhuti Jha, a renowned banker at RBI, said, “The central bank has a strong track record in protecting depositors during financial uncertainties. The current situation at IndusInd Bank is not a major crisis but an accounting anomaly. The bank had revealed that it had identified anomalies in its derivatives portfolio, which could have an impact of about 2.35 percent of its net worth by December 2024. Measures to resolve the issue are already being taken; hence, customers should be at ease that their deposits are safe.”
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