The Reserve Bank on Saturday assured customers that IndusInd Bank remains ‘well-capitalised’, even as it directed the bank’s board to complete remedial action relating to estimated ₹2,100 crore accounting discrepancy within this month.
Earlier this week, IndusInd Bank disclosed a discrepancy in accounting with an estimated impact of 2.35 per cent of the bank’s net worth. Soon after the disclosure, massive price correction in the bank’s scrip was witnessed.
Basis 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, RBI said in a statement.
“The Board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4FY25, after making required disclosures to all stakeholders,” it said.
Assuaging concerns of customers, the RBI in the clarificatory statement said there was no need for depositors to react to the speculative reports at this juncture.
There has been some speculation relating to IndusInd Bank Ltd in certain quarters, perhaps arising from recent events related to the bank, it said.
The central bank assured customers and investors that the bank’s financial health remains stable and is being monitored closely by it.
IndusInd Bank had informed that the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the RBI about this last week. The final number will be known after the external agency, which the bank has appointed, finalises its report by early April, according to the lender.
Sharing financial parameters of the bank, RBI said the bank is well-capitalised and the financial position 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 (LCR) of the bank was at 113 per cent as on March 9, 2025, as against regulatory requirement of 100 per cent.
Chartered accountants’ apex body ICAI may review the financial statements of IndusInd Bank, which is grappling with discrepancies in accounting estimated to be ₹2,100 crore.
The Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI) is likely to review the financial statements of the bank.
FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others.
