IndusInd bank well-capitalised; no need for depositors to worry: RBI

The Reserve Bank of India (RBI) assured deposits and stakeholders about the financial health of IndusInd Bank, saying that the bank is well capitalized and remains stable despite the ongoing concerns.
In a statement released on Saturday, the central bank said, “The Reserve Bank would like to say that the bank is well capitalized and the financial position of the bank is satisfactory.”
The apex bank said that for the quarter ended December 31, 2024, the bank maintained a 16.46 percent capital adequate ratio and a provision of 70.20 percent.
The bank said in a press release, “In addition, the liquidity coverage ratio (LCR) of the bank was 113 percent by 9 March 2025, which was more than the 100 percent regulator requirement.”
The Central Bank also mentioned that the IndusInd Bank is engaged in an external audit team to review its current systems and immediately assess any financial impact. The bank’s board and management are directed to complete all therapeutic functions within the current quarter (Q4Fy25) and make the necessary revelations for stakeholders.
“There is no need for depositors to react to the speculative report at this turn. The statement said that the financial health of the bank remains stable and is being closely monitored by the Reserve Bank.
Explanation The clarification issued the implementation -classification, evaluation and input portfolio of commercial banks in 2023 September 2023, after its own entry of discrepancies in other assets of the insufficient portfolio and other liabilities of the Indusind Bank, after its own entry of discrepancies, postfolio, the post -implementation, evaluation and investment portfolio of commercial banks, with 2023 September 2023, with April 01, 2024.
Banks are engaged in internal trades with low liquidity, including a swap system, where the yen was deposited with a term of 3–5 years, exchange for a multilateral unit for dollar deposits with a tenure of 8–10 years.
In response, IndusInd Bank appointed an external agency to review independently and validate its internal findings, with the review expected to be completed by the fourth quarter.
Meanwhile, the change in leadership has added the challenges of the bank. Earlier this month, RBI gave CEO Sumant Kathpalia a one -year term, despite the expectations of three years renewal. On 18 January 2025, the CFO of the bank also resigned citing other professional opportunities.