Context:
The Reserve Bank of India (RBI) approved in clear terms that IndusInd Bank is well capitalized, and the financial position remains stable in light of certain quarters raising doubts.
Key Highlights:
- The bank’s share price fell after a discrepancy in its derivatives portfolio was discovered, with the disclosure expected to put 2.35% value at stake.
- The Central Bank insisted that the bank was under consideration by the RBI and insisted that remedial action must end in Q4FY25 with needed disclosures to all concerned stakeholders.
Financial Strength of IndusInd Bank
- Capital Adequacy Ratio (CAR)
- 16.46% (as per Q3FY25 auditor reviewed results).
- Liquidity Coverage Ratio (LCR)
- 113% (as for March 9, 2025), surpassing the regulatory requirement of 100%.
- The bank has already engaged an external audit team to review its systems and assess the actual impact of the discrepancy.
RBI’s Appeal to Depositors
- The RBI urged depositors not to react to speculative reports, reiterating that IndusInd Bank’s financial health remains satisfactory.
- The regulator continues to closely monitor the situation to ensure stability and compliance.
