Disregard Speculation: RBI Reassures IndusInd Bank Depositors
Click to start listening
Synopsis
The Reserve Bank of India reassures depositors of IndusInd Bank's financial soundness amidst recent speculation. The bank's strong capital ratios and liquidity measures indicate robust financial health, with the RBI closely monitoring its situation.
Key Takeaways
- RBI confirms IndusInd Bank's financial stability
- Capital Adequacy Ratio of 16.46%
- Liquidity Coverage Ratio exceeds regulatory requirements
- External audit team engaged for system review
- Depositors advised against reacting to speculation
Mumbai, March 15 (NationPress) The Reserve Bank of India (RBI) has provided assurances to IndusInd Bank depositors regarding its financial stability, amid recent rumors concerning its fiscal health.
The central bank confirmed that the bank is well-capitalised and that depositors should not worry.
"…there is no need for depositors to respond to the speculative reports at this time," the central bank stated on its website.
The RBI further mentioned that the bank's financial health is stable and is under close observation.
As per the RBI, IndusInd Bank has reported a Capital Adequacy Ratio (CAR) of 16.46% and a Provision Coverage Ratio (PAR) of 70.20% for the quarter ending December 31, 2024.
The bank also upheld a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, significantly surpassing the regulatory standard of 100%.
These metrics indicate that the bank possesses adequate financial strength to fulfill its obligations, as stated by the central bank.
The RBI also pointed out that IndusInd Bank has hired an external audit team to evaluate its systems and assess the repercussions of recent events.
The bank's Board and management have been instructed to complete all required remedial actions within the current quarter (Q4 FY25) and ensure transparent disclosures to stakeholders.
In its statement, the RBI underscored that depositors should not respond to speculative reports, as the bank's financial position remains robust and is under its close monitoring.
The central bank also reaffirmed its strong history of safeguarding depositors during financial uncertainties.
Historically, the RBI has intervened to protect depositors' interests in situations involving Yes Bank in 2020, RBL Bank in 2021, as well as past crises like the Global Trust Bank collapse in 2004 and ICICI Bank's liquidity issues after the Lehman crisis in 2008.
The current situation at IndusInd Bank is described as a one-time accounting error. Earlier in the week, the bank revealed that it had detected discrepancies in its derivatives portfolio, which could affect about 2.35% of its net worth as of December 2024.
However, the bank is implementing corrective measures to resolve the issue, according to its official statement.
