IndusInd Bank Stabilizes Amid Accounting Discrepancy Concerns

The Reserve Bank of India reassures that IndusInd Bank remains financially stable despite a Rs 2,100 crore accounting discrepancy. The bank is directed to conclude remedial actions by Q4FY25. Customers are advised not to worry as an external review is underway, affirming the bank's robust financial health.

The Reserve Bank of India on Saturday reassured customers regarding the financial stability of IndusInd Bank, despite the recent discovery of a Rs 2,100 crore accounting discrepancy. The bank's board has been urged to complete necessary remedial actions within the current financial quarter, specifically Q4FY25.

IndusInd Bank recently revealed an accounting error impacting 2.35% of its net worth, leading to a significant correction in its share prices. The bank has engaged an external audit team to thoroughly examine and rectify the situation, ensuring comprehensive stakeholder disclosure as directed by the RBI.

Amid speculation, the RBI clarified there is no immediate cause for depositor concern, asserting that IndusInd Bank remains well-capitalized. Key financial metrics, as of December 31, 2024, show a Capital Adequacy Ratio of 16.46% and a Liquidity Coverage Ratio at 113%, surpassing regulatory requirements.

(With inputs from agencies.)