- Saturday, March 15, 2025
The central bank assured customers and investors that the bank’s financial health remains stable and is being closely monitored
By: India Weekly
The Reserve Bank on Saturday (15) asked IndusInd Bank’s board to complete remedial action during the current quarter amid disclosure of a ₹21 billion (£185.76m) accounting discrepancy.
Earlier this week, the Hinduja group promoted bank disclosed a discrepancy in accounting with an estimated impact of 2.35 per cent of the bank’s net worth.
The discrepancy in IndusInd Bank’s treasury business went unnoticed despite multiple audits like that of internal, statutory, and compliance, as well as by the RBI.
The disclosure led to a massive price correction in the bank’s scrip.
After the disclosure, the bank engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact expeditiously, RBI said in a statement.
“The Board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter, after making required disclosures to all stakeholders,” it said.
As such, there is no need for depositors to react to the speculative reports at this juncture, the statement said.
The central bank assured customers and investors that the bank’s financial health remains stable and is being monitored closely by it.
IndusInd Bank had informed that the accounting lapse was noted around September-October last year and the bank gave a preliminary update to the RBI about this last week.
The final number will be known after the external agency, which the bank has appointed, finalises its report by early April, according to the bank.
Sharing financial parameters of the bank, RBI said it would like to state that the bank is well-capitalised and the financial position remains satisfactory.
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. (PTI)
