RBI Addresses ₹2,100 Crore Accounting Discrepancy at IndusInd Bank
The Reserve Bank of India (RBI) has issued a statement regarding the ₹2,100 crore accounting error recently uncovered by IndusInd Bank. Assuring stability, the central bank emphasized that IndusInd Bank remains well-capitalized and financially sound despite the discrepancy.
The Reserve Bank of India (RBI) has issued a statement regarding the ₹2,100 crore accounting error recently uncovered by IndusInd Bank. Assuring stability, the central bank emphasized that IndusInd Bank remains well-capitalized and financially sound despite the discrepancy.
RBI’s Assurance on IndusInd Bank’s Financial Health
In its statement, the RBI clarified that IndusInd Bank’s financial position remains satisfactory. It highlighted that as per the auditor-reviewed financial results for the quarter ending December 31, 2024, the bank has:
- A Capital Adequacy Ratio of 16.46%
- A Provision Coverage Ratio of 70.20%
- A Liquidity Coverage Ratio (LCR) of 113%, exceeding the regulatory requirement of 100%
The RBI also confirmed that IndusInd Bank has already engaged an external audit team to review its systems and determine the full impact of the accounting error.
Corrective Measures and Regulatory Oversight
The central bank has instructed IndusInd Bank’s Board and management to ensure that all remedial actions are completed within the current quarter (Q4FY25). The bank has been directed to make the necessary disclosures to stakeholders during this period.
“The bank’s financial health remains stable and is being monitored closely by the Reserve Bank,” the RBI assured, while urging depositors and investors not to react to speculative reports.
The ₹2,100 Crore Accounting Error
IndusInd Bank first disclosed the accounting error on March 10, 2025, stating that discrepancies were found during an internal review of its assets and liabilities accounts related to its derivatives portfolio.
An initial assessment estimated the financial impact of the error at ₹2,100 crore pre-tax and approximately ₹1,600 crore post-tax, amounting to 2.35% of the bank’s net worth as of December 2024.
ICAI Likely to Review IndusInd Bank’s Financials
According to reports, the Institute of Chartered Accountants of India (ICAI) is expected to review IndusInd Bank’s financial statements to ensure compliance and accuracy.
Sources By Agencies
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