RBI Flags Discrepancy Worth ₹2,100 crore at IndusInd Bank

The discovery of an accounting discrepancy worth ₹2,100 crore by the IndusInd Bank has caused disbelief among many depositors. On Saturday, March 15, 2025, the Reserve Bank of India restated its confidence in the bank’s financial position to pacify rising concerns among depositors.

Financial Analysis of the IndusInd Bank

In Q3 of FY 2024-25, IndusInd bank released its auditor-approved financial results, which contained the following information:

This reveals that the IndusInd Bank has a strong buffer of capital (well above the prescribed regulatory requirements) to deal with potential losses. It can provide for nearly 70.20% of its losses arising from non-performing assets (NPAs). It also holds high-quality liquid assets to meet its cash obligations over a 30-day stress period.

Actions Taken 

IndusInd Bank has engaged an external audit team to expeditiously account for the real impact of its accounting error. The RBI has directed it to complete necessary remedial action by the end of Q4 of FY 2024-25.

What Should Depositors Do?

The central bank has assured depositors of the bank’s financial stability, despite an impact of nearly 2.35% on its net worth. The RBI has also encouraged depositors to refrain from acting on speculative reports.

What Happened At IndusInd Bank?

IndusInd Bank has experienced an accounting discrepancy which will impact its Q4 results by around ₹1500 crore. The issue is related to the internal hedging of NRI deposits. The “internal trades” did not have enough liquidity. While the internal trade used swap cost accounting, the external leg was marked to market. The issue was discovered when the bank unwound its internal trades.

Conclusion

With RBI’s confidence in the bank’s fundamentals, the savings of both depositors and investors in the bank are safe.

As of 2.35 PM on 17 March 2025, the IndusInd Bank share price was trading at ₹681.95. This was a 1.43% rise from the previous close.

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