“The Reserve Bank would like to state that [IndusInd Bank] is well-capitalised and the financial position of the bank remains satisfactory,” the RBI said.

“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,” it added.

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The Liquidity Coverage Ratio (LCR) of the bank was at 113 per cent as on March 9, 2025, as against regulatory requirement of 100 per cent, the central bank further stated.

It went on to add that as per public disclosures, IndusInd Bank has already engaged an external audit team to review its current systems and to 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.

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The bank also asked depositors not to react to speculative reports. “The bank's financial health remains stable and is being monitored closely by the Reserve Bank,” RBI concluded.

About ₹2,100 accounting error at IndusInd Bank?

The IndusInd Bank had disclosed on March 10, 2025, that some “discrepencies" were found during an internal review of processes related to assets and liabilities accounts of its derivatie portfolio.

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An internal review estimated the error's adverse impact to be approximately 2.35% of the bank's net worth as of December 2024. The financial impact is estimated at nearly ₹1,600 crore post-tax and about ₹2,100 crore pre-tax.