Shares of IndusInd Bank jumped over 3% on March 17 after the Reserve Bank of India (RBI) issued a statement confirming that the bank remains “well-capitalized” and in a “satisfactory financial position.” This announcement helped ease investor concerns about the bank’s financial health.
As per RBI, IndusInd Bank reported a Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.2% for the quarter ending December 31, 2024. Additionally, the bank maintained a Liquidity Coverage Ratio (LCR) of 113% as of March 9, 2025, exceeding the regulatory requirement of 100%.
Following this assurance, IndusInd Bank stock was trading at ₹691.85, 2.9% above the previous session’s close at 9:25 AM.
The statement from RBI follows after the bank’s recent disclosure about some discrepancies in its derivatives portfolio had raised concerns. IndusInd Bank had previously notified that the issues may result in an estimated 2.35% erosion in its net worth. According to the RBI, the Board and management of the bank have been advised to finalize the corrective actions required in the fourth quarter of FY25 while making disclosures transparent.
According to sources, these problems can impact the bank’s profit to the tune of ₹1,500 crore. CEO Sumant Kathpalia also mentioned on an analyst call that the bank may need to make provision for the loss in the profit and loss account rather than using general reserves.
The RBI’s affirmation of the bank’s good financial health has helped reaffirm investor confidence, which pushed its share price up. The bank’s next step in clearing the alleged discrepancies will be closely watched by market observers.
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Source: Moneycontrol.
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