IndusInd Bank Shares Rally Following RBI’s Reassurance

Shares of IndusInd Bank soared by 3.41% to ₹695.05 after the Reserve Bank of India stepped in to ensure private lenders financial stability.

While addressing the market concern, the central bank ensured that IndusInd Bank is “well-capitalised” and maintains a “satisfactory” financial position. RBI took key financial metrics into consideration, while highlighting the audited results for the quarter ended December 31, 2024. As per the results, Capital Adequacy Ratio (CAR) and Provision Coverage Ratio (PCR) stood at 16.46% and 70.20% respectively. Additionally, Liquidity Coverage Ratio (LCR) came at 113%, thereby surpassing the regulatory requirement of 100%.

The RBI emphasised stating there is “no need for depositors to react to the speculative reports at this juncture.” The statement also gave a confirmation to the investors stating that IndusInd Bank is relying on an external audit team to conduct a comprehensive review of its current systems, aimed at assessing the potential impact. The bank has also urged the private lender to complete the remedial actions within the current quarter (Q4FY25) and make necessary disclosures to all stakeholders.

RBI’s intervention and clarification have cheered up market sentiments, thereby leading to boost in investor confidence. It also assured that IndusInd Bank's financial health remains stable and healthy.

Previously, shares of IndusInd Bank came under severe pressure after the company reported discrepancies in its derivative portfolio. On March 10, IndusInd shares fell by 27.16%.