New Delhi: The Reserve Bank of India (RBI) has issued a statement regarding an accounting error worth Rs 2,100 crore which IndusInd Bank uncovered.
On March 10, IndusInd Bank disclosed that some “discrepancies” were found during an internal review of processes related to assets and liabilities accounts of its derivative portfolio.
According to an internal review, the adverse impact of the error is worth around 2.35% of the bank’s net worth as of December 2024 — estimated at nearly Rs 1,600 crore post-tax and about Rs 2,100 crore pre-tax.
The accounting error won’t impact customers as the bank is in good health financially.
“The Reserve Bank would like to state that (IndusInd Bank) is well-capitalised and the financial position of the bank remains satisfactory,” the RBI stated, reassuring customers.
“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,” RBI added.
Further, the Liquidity Coverage Ratio (LCR) of IndusInd Bank was at 113 per cent as on March 9, as against regulatory requirement of 100 per cent.
IndusInd Bank has already engaged an external audit team to review its existing systems, as well as assess and account for the actual impact of the accounting error expeditiously.
“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.
Urging depositors not to react to any speculative report, the central bank stated: “The bank’s financial health remains stable and is being monitored closely by the Reserve Bank.”
