Should Depositors Worry? RBI Addresses Concerns Over IndusInd Bank

The Reserve Bank of India (RBI) has addressed concerns surrounding IndusInd Bank, confirming that the bank remains financially stable and well-capitalized. This statement follows speculation about the bank’s financial health.

"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 of March 9, 2025, as against regulatory requirement of 100 per cent," RBI stated in a press release.

Induslnd Bank: Financials 

IndusInd Bank has reported a Capital Adequacy Ratio (CAR) of 16.46% as of December 31, 2024, indicating that it holds sufficient capital to absorb risks.
The bank also maintains a Provision Coverage Ratio (PCR) of 70.20%, reflecting its ability to cover potential loan losses.

Additionally, the bank’s Liquidity Coverage Ratio (LCR) stood at 113% as of March 9, 2025, exceeding the regulatory requirement of 100%, ensuring sufficient liquidity to meet short-term obligations.

Induslnd Bank: Corrective Measures

IndusInd Bank has engaged an external audit team to review its systems and assess the actual impact of recent events. The RBI has instructed the bank’s Board and management to complete all remedial actions within Q4FY25 and ensure full transparency with stakeholders.

“Based on the disclosures available in the public domain, the bank has already engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact expeditiously”, RBI said.

"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," RBI said further.

The RBI reassured that IndusInd Bank’s financial position remains strong and is under close regulatory monitoring. The central bank urged depositors not to react to speculative reports, affirming that the bank is in a stable condition.