IndusInd Bank's Financial Position 'Satisfactory', Says RBI

Earlier this week, IndusInd Bank revealed that it had identified discrepancies in its derivatives portfolio, which could potentially impact around 2.35 per cent of the bank's net worth as of Dec 2024

The RBI highlighted that as of December 31, 2024, IndusInd Bank reported a Capital Adequacy Ratio of 16.46 per cent and a Provision Coverage Ratio of 70.20 per cent

Source : JustDial

The Reserve Bank of India (RBI) issued a statement addressing recent speculation surrounding IndusInd Bank, affirming that the bank remains "well-capitalised" and its financial position is "satisfactory." The statement comes in response to concerns raised due to recent developments related to the bank.

The RBI highlighted that as of December 31, 2024, IndusInd Bank reported a Capital Adequacy Ratio of 16.46 per cent and a Provision Coverage Ratio of 70.20 per cent. Additionally, as of March 9, 2025, the bank maintained a Liquidity Coverage Ratio (LCR) of 113 per cent, well above the regulatory requirement of 100 per cent, according to a Moneycontrol report.

'Bank Maintained A Comfortable Capital Adequacy Ratio'

"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 (LCR) of the bank was at 113 per cent as of March 9, 2025, as against the regulatory requirement of 100 per cent," RBI said in its official statement. 

"Basis the disclosures available in the public domain, the bank has already engaged an external audit team to comprehensively review their current systems and to assess and account for the actual impact expeditiously. The Board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4FY25, after making required disclosures to all stakeholders," the central bank added.

Discrepancies In The Derivatives Portfolio

Earlier this week, IndusInd Bank revealed that it had identified discrepancies in its derivatives portfolio, which could potentially impact around 2.35 per cent of the bank's net worth as of December 2024.

The bank noted that this issue was uncovered during a review of its derivatives portfolio.

In response to the disclosure, the Reserve Bank of India intervened, advising the board of the struggling IndusInd Bank to consider external candidates for the positions of COO and CEO, according to an Economic Times report.