IndusInd Bank's Accounting Discrepancy Unveiled: RBI Steps In

The Reserve Bank of India has directed IndusInd Bank to address a significant accounting discrepancy amounting to Rs 2,100 crore within the current quarter. The bank's net worth impact is estimated at 2.35 per cent. An external audit is underway, and RBI assures stakeholders of the bank's stable financial health.

The Reserve Bank of India has taken decisive action, instructing the board of IndusInd Bank to resolve a substantial accounting discrepancy reported to amount to Rs 2,100 crore. The issue was disclosed earlier this week and is speculated to impact the bank's net worth by approximately 2.35 per cent. Following the announcement, a sharp decline in the bank's stock price was observed.

In response to the situation, IndusInd Bank has engaged an external audit team to thoroughly investigate and assess the impact swiftly. This move aims to offer transparency and facilitate timely corrections. The central bank has mandated that these corrective measures be finalized during the current fiscal quarter, with full disclosure to stakeholders.

Despite the unsettling revelation, the Reserve Bank reassured depositors and investors of IndusInd Bank's stable financial health, closely monitored under its watchful eye. The bank remains well-capitalized, maintaining a Capital Adequacy Ratio of 16.46 per cent and a Provision Coverage Ratio of 70.20 per cent. Additionally, its Liquidity Coverage Ratio stands strong at 113 per cent as of early March, surpassing the regulatory requirement.

(With inputs from agencies.)