RBI Directs IndusInd Bank to Complete Corrective Measures by March

Mumbai, March 15 – The Reserve Bank of India (RBI) has instructed IndusInd Bank's board to complete corrective measures within the current quarter, following the bank's disclosure of a major accounting discrepancy amounting to ₹2,100 crore.

As per agency report, earlier this week, IndusInd Bank revealed accounting irregularities that could impact its net worth by approximately 2.35%. The disclosure triggered a sharp decline in the bank’s stock value.

RBI stated that the bank had already engaged an external audit team to conduct a comprehensive review of its existing mechanisms and assess the actual financial impact. The central bank has directed IndusInd Bank’s board and management to complete all necessary corrective actions by the January-March quarter while ensuring full disclosure to stakeholders.

RBI also reassured depositors, stating that there is no need for panic or speculation regarding the bank’s financial stability. It emphasized that IndusInd Bank remains financially stable and that the central bank is closely monitoring the situation.

IndusInd Bank clarified that the accounting lapse first came to light around September-October last year, and it provided an initial report to RBI last week. The final assessment of the financial impact will be determined once the external agency appointed by the bank submits its conclusive report in early April.