The Reserve Bank of India (RBI) has addressed the recent revelation of a ₹2,100 crore accounting error at IndusInd Bank. In a statement issued on Saturday, the RBI reassured stakeholders about the financial health of the bank, noting that it remains well-capitalized despite the discrepancy. According to the central bank, IndusInd’s financial position remains satisfactory and stable.
The error, which was uncovered during an internal review, was related to the bank’s assets and liabilities in its derivative portfolio. On March 10, 2025, the bank disclosed that discrepancies in its financial statements had been identified, with the error impacting around 2.35% of the bank’s net worth as of December 2024. The bank estimated the post-tax financial impact of the error to be approximately ₹1,600 crore, and the pre-tax impact at ₹2,100 crore.
In its statement, the RBI emphasized that IndusInd Bank maintains a strong capital position. As of the quarter ending December 31, 2024, the bank reported a Capital Adequacy Ratio (CAR) of 16.46%, which is considered comfortable. The Provision Coverage Ratio (PCR) stood at 70.20%, indicating that the bank has provisions in place to cover potential losses. The Liquidity Coverage Ratio (LCR) was also reported to be 113%, well above the regulatory requirement of 100%, further reflecting the bank’s solid financial standing.
The RBI also mentioned that an external audit team has been engaged by IndusInd Bank to conduct a thorough review of the bank’s systems and to determine the actual impact of the error. The bank has been directed by the RBI to complete the necessary remedial actions during the current quarter (Q4 FY25), ensuring that all required disclosures are made to stakeholders.
Despite the error, the RBI urged the public and depositors not to be swayed by speculative reports. The central bank reassured that the financial health of the bank is being closely monitored and that it remains stable.
The accounting discrepancy at IndusInd Bank has raised concerns, but with appropriate corrective actions in place, the RBI has expressed confidence in the bank’s ability to recover and maintain its financial stability.
