RBI Reassures IndusInd Bank Depositors Amid Panic

The Reserve Bank of India (RBI) has assured depositors of IndusInd Bank that its financial health remains robust, urging them to disregard recent speculative reports. In a statement on its website, the RBI emphasized that the bank is well-capitalized and under close supervision, with no cause for alarm. “Depositors need not react to rumors,” it said, highlighting the bank’s stability.

As of December 31, 2024, IndusInd Bank reported a Capital Adequacy Ratio (CAR) of 16.46% and a Provision Coverage Ratio (PAR) of 70.20%. Its Liquidity Coverage Ratio (LCR) stood at 113% on March 9, 2025, exceeding the regulatory minimum of 100%. These metrics, per the RBI, confirm the bank’s ability to meet obligations.

The central bank noted that IndusInd has engaged an external audit team to review its systems following a disclosed accounting discrepancy in its derivatives portfolio, estimated to impact 2.35% of its net worth as of December 2024. The bank’s management and Board have been instructed to complete remedial actions within Q4 FY25 and ensure transparent disclosures.

The RBI underscored its history of protecting depositors, citing interventions in Yes Bank (2020), RBL Bank (2021), Global Trust Bank (2004), and ICICI Bank (2008). Unlike those crises, the current issue is a one-time glitch, not a systemic failure. IndusInd Bank has affirmed it is addressing the matter.