The Reserve Bank of India (RBI) has said that IndusInd Bank is adequately capitalised and financially stable and there is no need for depositors to react to speculation.
Mumbai:The Reserve Bank of India (RBI) has said that IndusInd Bank is adequately capitalised and financially stable and there is no need for
depositors to react to speculation.
This clarification follows the bank’s disclosure last Monday that an internal review of its derivatives portfolio revealed discrepancies
that could hit its net worth by approximately 2.35 per cent as of December 2024. The hedges taken by the bank to protect against forex
risk on its foreign currency borrowings were not properly valued, which could lead to a Rs 2,100 crore hit on its pre-tax earnings, the
bank said.
The central bank has also directed IndusInd Bank's Board and management to resolve discrepancies in its derivatives portfolio,
disclosed on Monday, by March 31, 2025, after informing all stakeholders.
“There has been some speculation relating to IndusInd Bank in certain quarters, perhaps arising from recent events related to the bank. The
Reserve Bank would like to state that the bank is well capitalised and the financial position of the bank remains satisfactory,” RBI said in
a statement.“There is no need for depositors to react to speculative reports at this juncture,” added the RBI statement. IndusInd Bank reported a
capital adequacy ratio of 16.46 per cent and a provision coverage ratio of 70.20 per cent for the quarter that ended on December 31,
2024.
The bank also maintained a liquidity coverage ratio (LCR) of 113 per cent as of March 9, exceeding the regulatory requirement of 100 per
cent.
