RBI's Reassurance on IndusInd Bank's Financial Health

The Reserve Bank of India (RBI) has recently issued a statement to reassure depositors and stakeholders about the financial stability of IndusInd Bank. Despite ongoing concerns, the RBI confirmed that the bank is well-capitalized and maintains a stable financial position.

For the quarter ending December 31, 2024, IndusInd Bank reported a capital adequacy ratio of 16.46% and a provision coverage ratio of 70.20%. Furthermore, the bank's Liquidity Coverage Ratio (LCR) was 113% as of March 9, 2025, surpassing the regulatory requirement of 100%.

External Audit and Leadership Changes

In response to internal process discrepancies related to its derivative portfolio, IndusInd Bank has engaged an external audit team for a comprehensive review. The bank's board and management have been instructed to complete all remedial actions within the current quarter and make necessary disclosures to stakeholders.

Amid these developments, IndusInd Bank has also faced leadership changes. CEO Sumant Kathpalia received a one-year tenure extension from the RBI, contrary to expectations of a three-year renewal. Additionally, the bank's CFO resigned on January 18, 2025, citing other professional opportunities.

The RBI emphasizes that there is no need for depositors to react to speculative reports at this time, as the bank's financial health remains stable and is under close monitoring by the Reserve Bank.