The Reserve Bank of India (RBI) has issued a statement addressing concerns surrounding IndusInd Bank’s recent derivative-related accounting discrepancy, urging depositors not to react to speculative reports. The central bank reassured the public that IndusInd Bank’s financial health remains stable and is under close supervision.
The issue came to light following a discrepancy in the bank’s forex hedge accounting, which is expected to impact its Q4 earnings by approximately Rs 1,500 crore—around 2.34% of its net worth. However, the RBI emphasized that the bank’s financial fundamentals remain strong. According to auditor-reviewed financial results for the quarter ending December 31, 2024, IndusInd Bank has maintained a Capital Adequacy Ratio of 16.46%, a Provision Coverage Ratio of 70.20%, and a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025—well above the regulatory requirement of 100%.
In light of these figures, brokerage firm CLSA reaffirmed its “Outperform” rating on IndusInd Bank, citing its strong fundamentals. Analysts anticipate a potential 30% upside in the bank’s share price, despite recent corrections over the past few trading sessions. Financial experts suggest that if IndusInd Bank continues to deliver results in line with market expectations over the next few quarters, investor concerns will likely diminish.
The RBI also confirmed that IndusInd Bank has engaged an external audit team to conduct a thorough review of its internal systems and to assess the actual financial impact. The bank’s Board and management have been instructed to implement remedial measures within the current quarter (Q4FY25) and disclose the findings to all stakeholders.
With a history of safeguarding depositor interests, the RBI referenced its successful interventions in stabilizing Yes Bank in 2020 and RBL Bank in 2021. The regulator assured the public that it remains committed to ensuring stability in the banking sector and maintaining depositor confidence in the financial system.
