The Reserve Bank of India has issued a statement assuring the public that IndusInd Bank, a private lender, is well-capitalized and its financial position remains satisfactory. This statement comes after IndusInd Bank reported an accounting discrepancy in its currency derivatives, which has led to an estimated $175 million impact on its earnings, equivalent to an entire quarter’s worth. The bank, backed by the Hinduja Group, has had a turbulent few months. The central bank has stated that there is no need for depositors to react to the speculative reports, and that the bank’s financial health remains stable, being closely monitored by the Reserve Bank.
IndusInd Bank has engaged an external audit team to review its current systems and assess the actual impact of the discrepancy. The bank’s financial health has been under scrutiny, and this move is aimed at restoring investor confidence. The Reserve Bank of India has reiterated that there is no cause for concern among depositors, and that the bank’s position remains stable. The move is expected to help restore investor confidence and stabilize the bank’s financial performance.