'IndusInd Bank well-capitalized, financial position remains satisfactory': RBI

The RBI's statement follows concerns arising from recent developments related to the IndusInd Bank.

The Reserve Bank of India (RBI) issued a statement addressing speculation regarding IndusInd Bank Ltd, stating that the bank remains "well-capitalised and the financially position remains satisfactory".

The RBI's statement follows concerns arising from recent developments related to the IndusInd Bank.

According to the RBI, IndusInd Bank reported a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% for the quarter that ended December 31, 2024. The bank also maintained a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, exceeding the regulatory requirement of 100%.

Also Read: IndusInd Bank Crisis: RBI steps in, tells board to nominate external candidates for COO, CEO posts

"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 on March 9, 2025, as against regulatory requirement of 100 per cent," RBI said in its official statement.

"Basis the disclosures available in 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 said.

Earlier this week, IndusInd Bank disclosed that the bank has noted some discrepancies in its derivatives portfolio which could have an adverse impact of about 2.35% of the bank's net worth as of December 2024.

According to the lender, this was discovered as part of its review of its derivatives portfolio.

Following the disclosure, Reserve Bank of India stepped in and told the board of crisis-hit IndusInd Bank to look for external candidates for the post of COO and CEO, an Economic Times report said.