The RBI, in a statement on March 15, said that IndusInd Bank remains well capitalised and financially stable as well.
For the December quarter, IndusInd Bank had reported a Capital Adequacy Ratio (CAR) of 16.46% and a Provision Coverage Ratio (PCR) of 70.2%. Liquidity Coverage Ratio also stood at 113%, higher than the 100% regulatory requirement as on March 9 this year.
India’s Central Bank has directed IndusInd Bank’s board and management to complete all remedial actions during the ongoing quarter and ensure that the necessary disclosures are made to the shareholders.
It must be noted that IndusInd Bank’s shares are currently in the F&O ban, which means no new positions can be created in the stock.
IndusInd Bank’s shares fell 27% last week, which was the biggest single-day fall on record for the stock after it reported an accounting discrepancy with regards to its derivatives portfolio.
The RBI said there is no need for depositors to react to speculative reports, as the bank’s financial position remains satisfactory and is under close monitoring by the regulator.
Shares of IndusInd Bank are up 3.5% in early trading on Monday at ₹695.75. The stock is still down over 50% from its peak of ₹1,576.
