The Reserve Bank of India (RBI) on Saturday asked the Board of Directors of IndusInd Bank to complete the corrective action amid the revelations of a huge disturbance of Rs 2,100 crore in the accounting announced by the bank during the current quarter.
IndusInd Bank had revealed the disturbances in the accounting this week. This is estimated to have 2.35 percent impact on the net price of the bank. Soon after the revelations, there was a huge decline in the price of the bank shares.
Based on publicly available revelations, the bank already said in a statement, its current RBI said that an external audit team has been appointed to make a comprehensive review of the system and assess the real impact and calculate it.
The central bank said, the board and management have been instructed by the Reserve Bank to complete the fully corrective action during the January-March quarter after making necessary revelations to all the stakeholders. The statement said that there is no need for depositors at this time to react to speculation.
The central bank assured customers and investors that the financial situation of the bank remains stable and it is closely monitoring it. IndusInd Bank said that there was a lapse in the accounting around September-October last year and the bank had given preliminary information to the RBI last week. According to the bank, the final number will be known when the external agency appointed by the bank will finalize its report in early April.
The bank recorded a decline of 39% in its standalone net profit in the December quarter, which stood at Rs 1,401 crore as compared to Rs 2,298 crore in the same quarter of the previous year. However, the post -Tax Benefits (PAT) Street was more than an estimate of Rs 1,282 crore.
Pure Interest Income (NII) was Rs 5,228 crore, which was Rs 5,296 crore in the third quarter of FY 2024. The net interest margin declined 4.29% in the third quarter of FY 2024 and 4.08% in the second quarter of FY 2025 to 3.93%.
On Monday, IndusInd Bank shares fell by 3.9% on BSE at Rs 900.6, while the benchmark Sensex fell by 0.29%. In the last 12 months, the stock has fallen by 42% and 1% in the last five years. The company's market capitalization is Rs 70,161 crore.
