RBI described the financial position of Indusind Bank as satisfactory and assured depositors that their money is safe. The bank’s capital adequacy ratio is 16.46% and liquidity coverage ratio is 113%.
The Reserve Bank of India (RBI) has said on the ongoing speculation about IndusInd Bank that the money of the depositors is completely safe. The financial position of the bank is satisfactory and it maintains adequate capitalization. After the 27 per cent fall in the bank’s stock due to discrepancies in the derivative portfolio, the bank customers are worried about their money. Now this clarification of RBI has brought relief to them as well.
RBI said in its statement that in the quarter ended 31 December 2024, the bank’s Capital Adequacy Ratio was recorded at 16.46% and Provision Coverage Ratio at 70.20%. Apart from this, as of 9 March 2025, the bank’s Liquidity Coverage Ratio (LCR) was 113%, which is more than the regulatory requirement of 100%.
Do not pay attention to speculations
RBI said, “At this time there is no need for depositors to pay attention to speculations. The financial condition of the bank remains stable and the Reserve Bank is keeping a close watch on it.” RBI has also put this clarification on its website so that all doubts about the bank are removed from the minds of the people.
External audit team will review
RBI further said that the bank has appointed an external audit team to conduct a comprehensive review of its existing system and evaluate the actual impact. The central bank has directed the board of directors and management of IndusInd Bank to complete the corrective action within this quarter (Q4FY25) and make necessary disclosures to all concerned parties.
Irregularities in derivatives portfolio
IndusInd Bank had disclosed that some anomalies have been found in its derivatives portfolio, which could have a negative impact of up to 2.35% on the bank’s total assets by December 2024. The bank said that this anomaly has come to light during the review of its derivatives portfolio. The bank is taking appropriate steps to resolve this issue.