RBI Addresses IndusInd Bank’s ₹2,100 Crore Accounting Issue, Assures Stability

Mumbai: The Reserve Bank of India (RBI) has released a statement regarding a ₹2,100 crore accounting error that IndusInd Bank recently uncovered. The central bank assured the public that IndusInd Bank remains financially sound.

“The Reserve Bank would like to state that IndusInd Bank is well-capitalised and the financial position of the bank remains satisfactory,” the RBI said in its statement on Saturday.

The RBI highlighted that as of December 31, 2024, the bank’s auditor-reviewed financial results showed a comfortable Capital Adequacy Ratio of 16.46 percent and a Provision Coverage Ratio of 70.20 percent.

Furthermore, the central bank noted that IndusInd Bank’s Liquidity Coverage Ratio (LCR) was 113 percent as of March 9, 2025, which is above the regulatory requirement of 100 percent.

The RBI also mentioned that IndusInd Bank has already hired an external audit team to thoroughly review its current systems and to accurately assess and account for the impact of the accounting error as quickly as possible.

“The Board and the management have been directed by Reserve Bank to have the remedial action completed fully during the current quarter viz., Q4FY25, after making required disclosures to all stakeholders,” the RBI stated.

The central bank also urged depositors not to be swayed by speculative reports, emphasizing that “The bank’s financial health remains stable and is being monitored closely by the Reserve Bank.”

IndusInd Bank Discovered Accounting Error Earlier

IndusInd Bank had initially disclosed the accounting error on March 10, 2025, stating that some “discrepancies” were found during an internal review of its assets and liabilities accounts related to its derivative portfolio.

The bank’s internal review estimated that the error would negatively impact its net worth by approximately 2.35 percent as of December 2024. The estimated financial impact is around ₹1,600 crore after tax and about ₹2,100 crore before tax.