IndusInd Bank Reveals ₹2,100 Crore Accounting Error: What’s Next?

The Reserve Bank of India (RBI) recently shared news about a big accounting mistake worth ₹2,100 crore that IndusInd Bank found. The RBI reassured everyone that IndusInd Bank is financially strong and in good shape. They reported that as of December 31, 2024, the bank has a strong Capital Adequacy Ratio (16.46%) and a solid Provision Coverage Ratio (70.20%).

Also, the bank’s Liquidity Coverage Ratio (LCR), which shows how easily it can manage its cash, was at 113% on March 9, 2025, higher than the required 100%.

The RBI mentioned that IndusInd Bank has hired an outside audit team to check its systems and understand the effects of this accounting mistake quickly. They have instructed the bank’s Board and management to fix the problem completely within this quarter (Q4FY25) and share this information with all the people involved.

The bank asked its depositors not to worry about rumors and confirmed that its financial health is stable and being watched closely by the RBI.

So, what happened with the ₹2,100 crore mistake? IndusInd Bank announced on March 10, 2025, that they found some “discrepancies” during an internal review of their asset and liability accounts. This mistake could impact about 2.35% of the bank’s net worth from December 2024. The total financial impact is expected to be around ₹1,600 crore after tax and about ₹2,100 crore before tax.