The Reserve Bank of India (RBI) has assured depositors of IndusInd Bank that there is no need to panic due to speculative reports in the media and asked the IndusInd Bank’s board on Saturday 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,” the RBI announced in an official statement.
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“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,” the RBI stated.
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“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 RBI stated.
On March 10, the bank had disclosed a discrepancy in its accounting with an estimated impact of 2.35 per cent of its net worth 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. After this disclosure, the bank’s share price witnessed a massive meltdown of more than 40 per cent.
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