IndusInd Bank shares jump 3% as RBI says bank is 'well-capitalized'

IndusInd Bank's stock has cracked 35 percent over the past one month.

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Shares of private lender IndusInd Bank Ltd. jumped over three percent on March 17 as 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".

According to the RBI, IndusInd Bank reported a Capital Adequacy Ratio of 16.46 percent and a Provision Coverage Ratio of 70.2 percent for the quarter that ended December 31, 2024. The bank also maintained a Liquidity Coverage Ratio (LCR) of 113 percent as of March 9, 2025, exceeding the regulatory requirement of 100 percent.

At 9.25 am, IndusInd Bank shares were trading at Rs 691.85, higher by 2.9 percent compared to the previous session's close.

"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.

The RBI's statement follows concerns arising from recent developments related to the IndusInd Bank. During an internal review of processes relating to parts of its derivatives portfolio, IndusInd Bank has estimated an adverse impact of 2.35 percent on its net worth as a result of some discrepancies in these account balances, a company filing said on March 10.

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"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.

This could potentially impact its profit by around Rs 1,500 crore, according to a person familiar with the matter. “I think general reserves cannot be touched, and we’ll have to take it to the P&L,” chief executive and managing director Sumant Kathpalia of the bank said during an analyst call.

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