Srinagar, Mar 15, KNT: Amid growing concerns among depositors over the financial health of IndusInd Bank, the Reserve Bank of India (RBI) on Saturday issued a clarification, asserting that the private lender remains financially sound and well-capitalized. The central bank’s statement comes in response to speculation triggered by recent developments surrounding the bank, which had led to unease among customers and investors alike.
In its official statement, the RBI assured that IndusInd Bank is operating well above regulatory requirements, reporting a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% for the quarter ending December 31, 2024. The bank’s Liquidity Coverage Ratio (LCR), a critical measure of its ability to meet short-term obligations, stood at 113% as of March 9, 2025, exceeding the mandatory 100%. These figures, as per the RBI, indicate that IndusInd Bank is not facing any immediate financial distress.
Despite the central bank’s reassurances, depositors remain apprehensive, particularly in light of the external audit the bank has initiated to assess the impact of recent events. While the specifics of these events have not been disclosed, the RBI has directed IndusInd Bank’s Board and management to complete all necessary remedial actions within the ongoing quarter and ensure full transparency in disclosures to stakeholders.
The RBI’s intervention aims to prevent panic among depositors, many of whom have been closely monitoring the situation, fearing potential disruptions. Given the history of banking crises that have affected depositors in India in the past, concerns about the safety of funds have become a recurring issue whenever a bank’s stability is questioned.
While the RBI’s assurance is expected to calm nerves, depositors will likely watch for further developments, particularly the findings of the external audit and subsequent actions taken by the bank.
