IndusInd Bank Engages Independent Firm to Investigate Derivative Portfolio Discrepancies
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Synopsis
IndusInd Bank has appointed an independent firm to investigate discrepancies in its derivative portfolio, which may impact its net worth by about 2.35%. The RBI assures depositors of the bank's stability amid recent financial speculations.
Key Takeaways
- IndusInd Bank hires an independent firm for investigation.
- Discrepancies could affect 2.35% of net worth.
- RBI reassures depositors about financial stability.
- Capital Adequacy Ratio stands at 16.46%.
- Liquidity Coverage Ratio exceeds regulatory needs at 113%.
New Delhi, March 21 (NationPress) IndusInd Bank has engaged an independent professional firm to examine discrepancies in its derivative portfolio.
Last week, the bank revealed that it had discovered discrepancies in its derivatives portfolio, potentially impacting approximately 2.35% of its net worth as of December 2024.
In a recent announcement to the stock exchanges, the bank indicated that this independent firm will carry out a thorough investigation to pinpoint the underlying causes of the recently reported accounting discrepancies.
This firm will evaluate the accuracy and implications of the accounting treatment of the derivative contracts in relation to the applicable accounting standards.
“On March 10, 2025, the Bank had communicated the ongoing review by an external agency regarding certain discrepancies identified by the Bank in its account balances concerning its derivative portfolio and that, once finalized, the Bank would appropriately reflect any resultant impact in its financial statements,” stated the stock exchange filing.
Additionally, the Board of Directors decided during a meeting to appoint an independent professional firm “to conduct a thorough investigation to, among other things, identify the root cause of the discrepancies, evaluate the accuracy and implications of the accounting treatment of the derivative contracts concerning the applicable accounting standards/guidance, identify any lapses, and establish accountability,” the filing further elaborated.
The bank had previously mentioned that an external agency was verifying the findings of the bank's internal review.
The Reserve Bank of India (RBI) has already reassured IndusInd Bank depositors about its financial stability following recent rumors regarding its financial health. The central bank confirmed that the bank remains well-capitalized and there is no need for concern among depositors.
It further stated that the bank’s financial health is stable and is being closely monitored by the Reserve Bank.
According to the RBI, IndusInd Bank 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 maintained a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, which exceeds the regulatory requirement of 100%.
The central bank also emphasized its strong history of safeguarding depositors during financial uncertainties.
