The bank says that the discrepancies are estimated to impact about 2.35 per cent of its net worth as at December 2024
[MUMBAI] The Reserve Bank of India (RBI) directed IndusInd Bank’s board and management to complete remedial action in the current quarter, after the lender found discrepancies in its derivatives portfolio and warned of a one-time hit on its earnings.
“The bank’s financial health remains stable and is being monitored closely by Reserve Bank,” the RBI said on Saturday (Mar 15). “There is no need for depositors to react to the speculative reports at this juncture,” it said.
The lender’s shares fell 27 per cent on Tuesday in their worst trading day ever after Monday’s disclosure of the discrepancies. The RBI had previously cut short chief executive officer Sumant Kathpalia’s term extension to one year from the three years sought by IndusInd.
The bank, controlled by the billionaire Hinduja brothers, said that the discrepancies are estimated to impact about 2.35 per cent of its net worth as at December 2024. IndusInd appointed an external agency to independently review and validate the internal findings, the company said.
The RBI said that IndusInd is well-capitalised, with a liquidity coverage ratio of 113 per cent as at Mar 9, compared with the regulatory requirement of 100 per cent. BLOOMBERG
Share with us your feedback on BT’s products and services
